Subhash Chandra NCLT Payout  – The Congress party took a sharp swipe at the National Company Law Tribunal (NCLT) following its approval of a repayment plan allowing media baron Subhash Chandra to settle ₹22,006.57 crore in admitted creditor claims for just ₹6.5 crore. Senior Congress leader Jairam Ramesh criticized the decision, stating that accepting a staggering 99.97% haircut makes a “complete mockery” of the Insolvency and Bankruptcy Code (IBC), 2016.

Subhash Chandra NCLT Payout  – Congress Terms Record 99.97% Lenders’ Haircut as ‘Mundan’

Reacting strongly to the decision, Congress General Secretary Jairam Ramesh remarked that calling this settlement a “haircut” is an understatement, describing it instead as a “mundan” (tonsure). He highlighted that under standard financial terminology, a haircut represents the difference between what creditors are owed and what they actually recover. Allowing a public debt recovery of merely 0.03% on multi-thousand-crore admitted claims sets a damaging precedent for corporate debt resolution across India.

 Subhash Chandra NCLT Payout  – NCLT Third Member Overrules Dissenting Lenders Led by LIC Housing Finance

The approval was granted by NCLT Member (Judicial) Nilesh Sharma, acting as the tie-breaking third member after the original bench issued a split verdict. The tribunal rejected formal objections led by LIC Housing Finance—which was set to recover only ₹38.09 lakh against its admitted claim of ₹1,322.39 crore. The tribunal ruled that the repayment plan was backed by 80.81% of the creditors’ voting share and that Chandra’s personal estate was valued at significantly less than the offered payout.

Subhash Chandra NCLT Payout – Ruling Sets Binding Resolution Framework for Personal Insolvency

In  it  144-page order, the tribunal clarified that its role remains supervisory rather than investigative, refusing to override the commercial wisdom exercised by the majority of financial creditors. Under Section 115 of the IBC, the approved repayment plan becomes legally binding on all creditors, preventing dissenting financial institutions from pursuing independent recovery suits against Chandra outside the established plan.