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NCLT stays Subhash Chandra Rs 6.25 crore plan
The Hindu BusinessLine··1 Sept
A five-member NCLT Bench stayed an August 25 order approving Essel Group founder Subhash Chandra's Rs 6.25 crore repayment plan. It said no majority view had emerged among earlier members. The Bench restrained Chandra from alienating properties and issued notices to all parties. About Rs 22,006 crore in claims stand admitted against him as a personal guarantor.
Prism
What It Means For You
- Creditors who opposed the plan keep recovery options open while the stay holds.
- Chandra cannot sell or transfer properties covered by the guarantor restraint.
- NCLAT listed for Wednesday whether it still needs to hear the lenders' appeal.
What's Happening
- The five-member Bench found conflicting views among the earlier members.
- The August 25 approval is in abeyance pending a fresh presidential reference.
- Solicitor General Tushar Mehta appeared for creditors at NCLAT after the stay.
How The Bench Split Formed
- A Division Bench disagreed, so a third member ruled on August 25.
- One view would let dissenting banks pursue separate recovery; another would bind all creditors.
- The personal settlement is about Rs 6.25 crore from Chandra's estate.
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