Subhash Chandra’s ₹6.25 Crore Settlement Plan Hits Roadblock as NCLT Forms 5-Member Bench

Public Lokpal
September 01, 2026

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Subhash Chandra’s ₹6.25 Crore Settlement Plan Hits Roadblock as NCLT Forms 5-Member Bench

Essel Group and Zee founder Subhash Chandra’s personal insolvency repayment plan of ₹6.25 crore—aimed at settling admitted claims of roughly ₹22,006 crore—has stalled after the National Company Law Tribunal (NCLT) formed a rare 5-member special bench to resolve a deeply divided judicial deadlock.

The controversy erupted following a split verdict between a judicial member, who favored approving the proposal for consenting creditors, and a technical member, who rejected it entirely over procedural concerns.

A third referral member introduced further complexity by approving the plan while attempting to exclude certain individual claims, preventing a clear majority consensus.

Major financial institutions, including HDFC Bank and Canara Bank, have fiercely opposed the settlement. They argue that nearly 61.8% of the supporting votes originated from related family entities and associate firms, creating a potential conflict of interest.

The newly constituted larger bench will now review the legality of these related-party votes and determine whether the heavily discounted restructuring proposal can move forward.