The National Company Law Tribunal (NCLT) on Tuesday stayed its August 25 order that had approved a repayment plan proposed by Zee Group founder Subhash Chandra in his personal insolvency case, according to multiple sources. The tribunal said the earlier orders did not reflect a clear majority view and decided to hear the matter afresh.

The five-member bench, headed by NCLT President Justice (retd) Anupinder Singh Grewal, issued notices to all parties and directed that Chandra, as guarantor, shall not sell, transfer, alienate, encumber or otherwise deal with his properties, directly or indirectly, during the pendency of the case.

Under the repayment plan, Chandra had proposed to pay ₹6.25 crore to creditors against admitted claims of ₹22,006.57 crore. An additional ₹25 lakh was set aside towards insolvency resolution process costs.

The stay comes after the original two-member bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri failed to reach a consensus on the plan. Bhardwaj supported approval only for creditors who had backed the plan, and suggested that dissenting creditors, including banks and financial institutions, should be free to pursue separate recovery proceedings. Puri rejected the plan, citing serious procedural flaws in the process followed by the resolution professional.

The matter was then referred to Judicial Member Nilesh Sharma under Section 419(5) of the Companies Act, 2013. On August 25, Sharma approved the repayment plan, but excluded claims submitted by Anil Kumar on behalf of 960 individuals and those submitted by Sunil Jain on behalf of 300 individuals. He directed that the amounts earmarked for those excluded claims be redistributed among other eligible creditors. Sharma also ruled that the approved plan would be binding on all creditors, including those who opposed it.

However, the newly constituted five-member bench observed that no majority view emerged despite the reference to the third member, and therefore stayed the earlier order. The bench clarified that the August 25 judgment cannot be given effect to at this stage and that all parties would be heard at length before the matter proceeds.

The insolvency proceedings relate to personal guarantees furnished by Chandra for borrowings of Essel Group-linked companies. Indiabulls Housing Finance, now known as Sammaan Capital, initiated proceedings against him in 2022 after a loan extended to Vivek Infracon turned bad. The insolvency plea was admitted in 2024, with several other creditors subsequently participating.

The matter had also reached the National Company Law Appellate Tribunal (NCLAT), where Solicitor General Tushar Mehta appeared for the dissenting creditors. Mehta informed the appellate tribunal about the constitution of the five-member bench and the stay of the August 25 order, and requested time until Wednesday to decide on whether to press the appeal. The NCLAT agreed to hear the creditors' challenge after Mehta sought urgent listing.

The tribunal also mentioned lapses in admitting claims pertaining to 960 individuals through Anil Kumar and 300 individuals through Sunil Jain on the basis of verbal assurances. Sharma held that these unsupported claims should not have been admitted but found that the lapse did not adversely impact the entire insolvency process.

The date of the next hearing will be made clear once the written order is issued by the bench.