NCLT bars Subhash Chandra from alienating assets, stays Rs 6.5-crore settlement order
NCLT restrains Subhash Chandra from alienating assets and stays a Rs 6.5-crore settlement order due to lack of majority consensus.Summary
A five-member special bench of the National Company Law Tribunal (NCLT) stayed an August 25 order that had approved a repayment plan allowing Essel Group chairman Subhash Chandra to settle personal guarantee claims for approximately Rs 6.5 crore. The bench, headed by President Justice Anupinder Singh Grewal, ruled there was no clear majority view under Section 419(5) of the Companies Act to implement the order. The tribunal also restrained Chandra from alienating any assets directly or indirectly and issued notices to all parties. The restraint was sought by Solicitor General Tushar Mehta on behalf of dissenting creditors, including LIC Housing Finance, Canara Bank, and Union Bank. The dispute stems from conflicting judgments in September 2025 and a subsequent approval by a third member in August 2026. Creditors' claims total roughly Rs 22,006 crore, though Chandra disputes this figure, placing his liability around Rs 3,990 crore. The matter is also pending before the NCLAT and will be heard next on September 23.
(Source：The Times Of India)