NEW DELHI: The National Company Law Tribunal (NCLT) on Tuesday restrained Essel Group chairman Subhash Chandra from alienating his assets and stayed an earlier order approving a repayment plan that would have allowed him to settle claims arising from personal guarantees for about Rs 6.5 crore.A five-member special bench headed by NCLT president Justice Anupinder Singh Grewal said there was no clear majority in favour of the plan and the August 25 order could not be implemented.”It is manifest that as per Section 419(5) of the Companies Act, there is no clear majority view capable of being given effect to. Therefore, the order dated August 25, 2026 of the third member, Nilesh Sharma, Member (Judicial) is stayed,” the bench said.The tribunal directed that Chandra, as the personal guarantor, “shall not alienate any assets whatsoever either directly or indirectly” and issued notices to all parties.The restraint was sought by solicitor general Tushar Mehta, appearing for dissenting creditors including LIC Housing Finance, Canara Bank and Union Bank. He warned that the “substratum” of the matter could otherwise be lost.”We will hear you at length,” the bench told Chandra’s counsel after he sought to make a brief submission. The matter will next be heard on September 23.The dispute is also before the National Company Law Appellate Tribunal (NCLAT), where dissenting lenders have challenged the repayment plan. A three-member bench led by officiating chairperson Justice Yogesh Khanna heard the matter on Tuesday after Mehta sought time to decide whether the lenders would pursue the appeal.The case follows conflicting views in Chandra’s personal insolvency proceedings. An original two-member NCLT bench delivered dissenting judgments in September 2025, with Ashok Kumar Bhardwaj approving the plan and Reena Sinha Puri rejecting it over alleged irregularities in the admission and voting on claims.Third member Nilesh Sharma subsequently approved the plan on August 25, subject to changes involving disputed claims. The lack of a clear majority led to the constitution of the five-member special bench.Join conversationView All Comments →Share your thoughts in the commentsInsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig DevelopmentPost CommentBe respectful · TOI community guidelinesUnder the proposed plan, creditors would recover around Rs 6.5 crore against claims of roughly Rs 22,006 crore. Chandra has disputed the larger figure, saying it includes liabilities of Essel Group companies for which he had provided personal guarantees. He has put claims against his guarantees at about Rs 3,990 crore.Following Tuesday’s order, Chandra said according to news agency PTI, “We have complete faith and confidence in our judicial system.”Get the latest India News and Live updates. Download the TOI app.About the AuthorSubhadra SrivastavaSubhadra Srivastava is a journalist with The Times of India, covering geopolitics, international and national affairs. With over three years of experience, she focuses on national and global developments, conflict, diplomacy and their impact on India. Her work combines breaking news with in-depth analysis, offering readers context and clarity on the stories shaping the world.Read MoreEnd of ArticleFollow Us On Social MediaVideosSonia Gandhi’s ‘Belonging’ Book Row: Why Did Penguin India Drop the Publishing Deal?Centre Defers Census In Manipur Amid NRC ProtestsCash Shortage Unlocks ₹17 Crore Fake Note Mystery At PNB’s Saharanpur Currency ChestBihar, Jharkhand End 25-Year Dispute, Sign Sone River Water-Sharing Agreement‘Spreading Jhooth Ki Goonj’: PM Modi Hits Out At Rahul Gandhi, Hails 7.8% GDP Growth In New VideoNepal Flood Crisis: 8,900 Army Personnel Deployed As Search For Missing People ContinuesDelhi Draft Voter Roll Out: 47.7 Lakh Electors Excluded, Claims Allowed Till September 30Akhilesh Yadav’s Big Attack On UP Govt; Divya Mittal Resignation & Meerut Custody RowIndus Waters Row: India Rejects Hague Court’s Jurisdiction, Says Treaty Suspension Will Continue’Dumped 40 KM Away In Delhi’: Teen Allegedly Gang-Raped In Empty Sleeper Bus, Two Accused Arrested123Hot PicksNepal floodGrand Canyon floodsSugar importMumbai milk priceCNG priceGoa anti-conversion billTN milk price hikeMaharashtra SIRDelhi trafficTop TrendingPM ModiDelhi TrafficDan DriscollPakistan Hindu Temple DemolishedUS Iran WarGlenn PhillipsPascal WehrleinConnor McDavidDelhi SIRLebron James
NEW DELHI: The National Company Law Tribunal (NCLT) on Tuesday restrained Essel Group chairman Subhash Chandra from alienating his assets and stayed an earlier order approving a repayment plan that would have allowed him to settle claims arising from personal guarantees for about Rs 6.5 crore.A five-member special bench headed by NCLT president Justice Anupinder Singh Grewal said there was no clear majority in favour of the plan and the August 25 order could not be implemented.“It is manifest that as per Section 419(5) of the Companies Act, there is no clear majority view capable of being given effect to. Therefore, the order dated August 25, 2026 of the third member, Nilesh Sharma, Member (Judicial) is stayed,” the bench said.The tribunal directed that Chandra, as the personal guarantor, “shall not alienate any assets whatsoever either directly or indirectly” and issued notices to all parties.The restraint was sought by solicitor general Tushar Mehta, appearing for dissenting creditors including LIC Housing Finance, Canara Bank and Union Bank. He warned that the “substratum” of the matter could otherwise be lost.“We will hear you at length,” the bench told Chandra’s counsel after he sought to make a brief submission. The matter will next be heard on September 23.The dispute is also before the National Company Law Appellate Tribunal (NCLAT), where dissenting lenders have challenged the repayment plan. A three-member bench led by officiating chairperson Justice Yogesh Khanna heard the matter on Tuesday after Mehta sought time to decide whether the lenders would pursue the appeal.The case follows conflicting views in Chandra’s personal insolvency proceedings. An original two-member NCLT bench delivered dissenting judgments in September 2025, with Ashok Kumar Bhardwaj approving the plan and Reena Sinha Puri rejecting it over alleged irregularities in the admission and voting on claims.Third member Nilesh Sharma subsequently approved the plan on August 25, subject to changes involving disputed claims. The lack of a clear majority led to the constitution of the five-member special bench.
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Under the proposed plan, creditors would recover around Rs 6.5 crore against claims of roughly Rs 22,006 crore. Chandra has disputed the larger figure, saying it includes liabilities of Essel Group companies for which he had provided personal guarantees. He has put claims against his guarantees at about Rs 3,990 crore.Following Tuesday’s order, Chandra said according to news agency PTI, “We have complete faith and confidence in our judicial system.”
