The National Company Law Tribunal (NCLT) in Delhi has stayed its earlier approval of a repayment plan submitted by Subhash Chandra, according to Live Law. The five-member bench issued the stay on Tuesday, putting a hold on the August 25 verdict that had greenlit the ₹6.25 crore payout proposal.
The stay comes amid significant creditor claims against Chandra, with the total amount sought reaching ₹22,006 crore, as reported by The Hindu. The tribunal's decision to halt the approval means the case will now be heard afresh, according to Bar and Bench.
Live Law reports that the five-member bench's intervention effectively suspends the previous ruling while the matter is reconsidered. The Times of India adds that the NCLT has also issued notices and barred Chandra from disposing of any properties during the ongoing proceedings.
The repayment plan had proposed a settlement of just ₹6.25 crore against the massive claims, a disparity that likely drew scrutiny from the tribunal. The fresh hearing will allow both sides to present their arguments again, with the property disposal ban remaining in effect in the interim.
The case stems from insolvency proceedings initiated against Chandra, though the specific grounds for the original petition are not detailed in the available reports. The NCLT's decision to revisit its own approval signals that questions were raised about the adequacy or validity of the repayment terms.
What to watch next: Whether the tribunal's fresh review leads to a revised repayment plan or a more substantial payout offer from Chandra in the coming hearings.
