NCLT Stays Repayment Plan for Zee Founder Subhash Chandra

A five-member special bench of the National Company Law Tribunal (NCLT), led by President Justice Anupinder Singh Grewal, has stayed an August 25 order that approved a repayment plan for Subhash Chandra, the founder of Zee Group and Essel Group. The disputed plan proposed paying creditors ₹6.25 crore against admitted claims of ₹22,006.57 crore, representing a recovery of approximately 0.028%.

The NCLT took this action after a previous three-member bench reached a judicial deadlock, producing three materially different positions on the plan's approval. As part of the stay, the NCLT barred Chandra from selling, transferring, or otherwise dealing with his properties. Chandra has since challenged the formation of the five-member bench, arguing that expanding the bench exceeds statutory powers under the Companies Act.

Chandra maintains that the ₹22,006 crore figure represents personal guarantees for Essel Group-linked companies rather than personal loans, asserting his actual borrowing is zero. Meanwhile, dissenting lenders, including HDFC Bank, LIC Housing Finance, and Union Bank of India, have appealed to the National Company Law Appellate Tribunal (NCLAT). These creditors argue the recovery is negligible and allege the plan was approved based on wrongly admitted claims.

The NCLAT has kept the creditors' appeal pending and will examine the procedural legality of the NCLT's bench expansion. The NCLT is scheduled to hear the matter afresh on September 23, 2026, while the NCLAT has adjourned its hearing until October 7.