NCLAT Issues Notice to Creditors on Subhash Chandra’s Petition

The National Company Law Appellate Tribunal (NCLAT) has issued notices to creditors in connection with a petition filed by Essel Group Chairman Subhash Chandra in his personal insolvency case. The appellate tribunal has directed the creditors to submit their responses within a week, while Chandra has also been given a week to file his rejoinder. The matter has been scheduled for further hearing on October 29 and 30.

The case relates to a repayment plan under which Chandra had proposed paying about ₹6.5 crore against admitted creditor claims of around ₹22,006.57 crore arising from personal guarantees. The NCLT had earlier stayed the order approving the repayment plan and restrained Chandra from alienating his assets. The creditors have separately challenged the repayment plan before the NCLAT, and that matter has been clubbed with Chandra’s appeal.