The NCLT has approved a plan to settle a total debt of ₹22,000 crore in the personal insolvency case of Zee Group founder Subhash Chandra for a mere ₹6.5 crore. As a result, the lending banks and financial institutions will have to bear a loss of 99.97% of their outstanding dues. Every detail related to Subhash Chandra’s debt settlement, in 10 questions and answers… Question 1. What decision has the NCLT delivered in Subhash Chandra’s personal insolvency case? Answer: The insolvency tribunal, NCLT, has approved Subhash Chandra’s repayment plan under Section 114 of the Insolvency and Bankruptcy Code. Under this, Subhash Chandra will have to pay only ₹6.5 crore against a total debt of ₹22,006.57 crore. Following this, his remaining outstanding debt of over ₹22,000 crore will be legally extinguished forever. Question 2. Who delivered this verdict and what was the opinion in the tribunal? Answer: Prior to this, a two-member bench of the NCLT had delivered a split verdict on this matter. Following this, the NCLT Chairman appointed Judicial Member Nilesh Sharma as the third member. Based on the majority, Nilesh Sharma approved the repayment plan in a 144-page order. Question 3. Which major bank or institution opposed this decision? Answer: Some creditors, led by LIC Housing Finance, had raised objections to this repayment plan. Terming it “impractical and illegal,” LIC Housing stated that they were being offered only ₹38.09 lakh against their outstanding dues of ₹1,322.39 crore. Question 4. Why did the NCLT reject the objections of the dissenting creditors? Answer: The NCLT found that the dissenting creditors held less than 20% of the voting share. The repayment plan had already received the necessary approval from creditors holding 80.81% of the voting share. In accordance with the law, the tribunal rejected the objections due to the majority approval. Question 5. What logic did the NCLT provide to justify Chandra’s repayment plan? Answer: The tribunal stated that according to the resolution professional’s valuation, the value of Subhash Chandra’s personal assets is less than the amount offered in the plan. If this plan were rejected, Chandra would have been declared bankrupt, and the creditors would have received even less. By approving the plan, Chandra will be able to stand on his feet financially, and the possibility of future recovery from the original debtors will remain. Question 6. What will be the further process in this case now? Answer: After the court’s approval, the resolution professional will now prepare a final list of all creditors. Following this, the amount of ₹6.5 crore will be distributed among all these banks and creditors as per the rules. Finally, this matter will go back to the main bench of the insolvency court. Once the formal legal stamp is received from there, this case will be completely closed. Question 7. What impact will this decision have on the Indian banking and corporate sector? Answer: This verdict will set a major precedent for all such future cases. It sends a clear message that if banks or individuals providing more than 75% of the credit agree to a repayment plan, the court will consider their business decision as supreme. This holds true even if the banks have to forgo more than 99% of their money and receive only a nominal amount in the name of recovery. Post navigation Protein reached from gym to kitchen, supplements increased by 230%:Companies now selling milk, curd, paneer, bread, and beverages in the name of protein
