NCLT stays Subhash Chandra's ₹6.25cr insolvency settlement order
What's the story
The National Company Law Tribunal (NCLT) has stayed its August 25 order in the insolvency case of Essel Group chairman Subhash Chandra. The tribunal has also barred him, as guarantor, from transferring or disposing of his properties, directly or indirectly. The matter is now with a special five-member NCLT bench after differences arose in the orders passed by three members hearing the case.
Review process
Notices issued to all parties involved in the matter
The special bench, which started hearing the case today, observed that earlier orders were inconsistent and there was no clear majority view.
The tribunal has issued notices to all parties involved in the matter.
This comes after an earlier NCLT order allowed Chandra to settle his insolvency proceedings by paying some ₹6.25 crore, despite claims of over ₹22,000 crore against him.
Controversy
Chandra barred from transferring or disposing of his properties
The earlier NCLT order had raised questions over how admitted claims could be settled for a fraction of the amount.
Now that the order has been stayed, the five-member bench will reconsider the matter.
The tribunal's latest direction also bars Chandra, as guarantor, from directly or indirectly transferring or disposing of his properties while proceedings are pending.