Subhash Chandra insolvency: NCLT issues notices, bars him from disposing of properties

NEW DELHI: The National Company Law Tribunal (NCLT) on Tuesday issued notices to all parties in the personal insolvency case of Essel Group Chairman Subhash Chandra and directed him not to alienate his properties, either directly or indirectly, as it sought to examine the dispute over his repayment plan.The five-member special NCLT bench, headed by President Justice Anupinder Singh Grewal, said there was no majority view among its members and, therefore, no final order could yet be given effect to. The bench said it wanted to hear all parties, including creditors who have opposed the repayment plan."Let notice be issued to all the parties," the National Company Law Tribunal (NCLT) said.The bench also ordered, "We also direct that the guarantor shall not alienate the properties, either directly or indirectly. Respectful submissions."Justice Grewal said the tribunal was issuing notices to understand the scope of the matter before taking up the questions arising from the dispute at the next hearing."You can address your concerns, whatever they are. Then we will, around the next date, take up whatever questions have come up," he said.The latest development comes days after the NCLT approved a repayment plan under which creditors are expected to recover about Rs 6.25 crore from Chandra's personal estate, against claims of around Rs 22,006 crore.Chandra has maintained that the Rs 22,006 crore figure has been widely misunderstood. According to him, the amount represents claims arising from personal guarantees he had given for loans taken by companies associated with the Essel Group, rather than money he had personally borrowed.The repayment plan had earlier come before the five-member bench after a two-member NCLT division bench comprising Ashok Kumar Bhardwaj, Member (Judicial), and Reena Sinha Puri, Member (Technical), delivered a split verdict.The matter was subsequently referred to a third member. The third member's order, which provided for recovery of about Rs 6.25 crore from Chandra's personal estate against claims of roughly Rs 22,006 crore, was challenged by public sector banks that had dissented from the repayment plan before the National Company Law Appellate Tribunal (NCLAT).The insolvency dispute moved to the appellate tribunal soon after Tuesday's NCLT hearing. NCLAT took up the matter filed by the dissenting creditors and, following a request from Solicitor General Tushar Mehta, who appeared for LIC Housing Finance, Canara Bank and Union Bank, among others, directed that it be listed on Wednesday.Get the latest Business News and Live updates. Download the TOI app.