In a major development in personal insolvency resolution proceedings, the National Company Law Tribunal (NCLT) has approved a repayment plan submitted by Essel Group founder Subhash Chandra. Under the tribunal-sanctioned plan, Chandra will pay ₹6.5 crore to resolve admitted creditor claims totaling ₹22,006.57 crore. The arrangement results in a recovery rate of approximately 0.03% for lenders, translating to a steep 99.97% haircut on the outstanding dues.
The personal insolvency proceedings stem from Chandra’s role as a personal guarantor for debts incurred by various Essel Group entities, including Zee Entertainment. The approved scheme was rendered under Section 114 of the Insolvency and Bankruptcy Code (IBC).
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The legal outcome followed a protracted process at the tribunal. The original two-member NCLT bench delivered a split verdict regarding the resolution scheme. To break the deadlock, NCLT Member (Judicial) Nilesh Sharma was appointed as the third member, ultimately casting the deciding vote to approve the ₹6.5 crore repayment plan.
