NCLAT defers insolvency proceedings against Zee founder Subhash Chandra

The NCLAT (National Company Law Appellate Tribunal) has deferred the insolvency proceedings against Zee founder Subhash Chandra to October 7, following a legal challenge by Chandra's counsel over the constitution of a 5-member NCLT bench, reported ET Now on Wednesday.

The delay comes as major lenders including Union Bank, Canara Bank, and LIC Housing Finance, contest a tie-breaker judge's order approving a ₹6.5 crore repayment plan against Chandra’s ₹22,000 crore in admitted liabilities.

Earlier on Tuesday, a five-member special bench of the National Company Law Tribunal (NCLT) issued notices to all parties in the personal insolvency case of Chandra and directed him not to alienate his properties, directly or indirectly.

The bench, headed by NCLT President Justice Anupinder Singh Grewal, said there was no majority view on the proposed repayment plan and, therefore, no final order could be given effect to at this stage.

"Let notice be issued to all the parties," the NCLT said.

The tribunal further directed, "We also direct that the guarantor shall not alienate the properties, either directly or indirectly. Respectful submissions."

The case centres on a repayment plan under which creditors are set to recover about Rs 6.25 crore from Chandra's personal estate against admitted claims of roughly Rs 22,006 crore.

Chandra has said the Rs 22,006 crore figure has been widely misunderstood, as the claims arise from personal guarantees he had provided for loans taken by companies associated with the Essel Group and do not represent money he personally borrowed.

Justice Grewal said the special bench wanted to examine the scope of the dispute and hear all parties, including the dissenting creditors.

"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 matter reached the five-member bench after a two-member NCLT division bench comprising Ashok Kumar Bhardwaj, Member (Judicial), and Reena Sinha Puri, Member (Technical), delivered differing views on the repayment plan.

The case was subsequently referred to a third member. The third member approved a plan under which creditors would recover about Rs 6.25 crore from Chandra's personal estate against claims of around Rs 22,006 crore.

However, the PSU banks and other dissenting creditors challenged the third member's order before the National Company Law Appellate Tribunal (NCLAT).