Law Tribunal Permits Subhash Chandra to Settle ₹2,200-Crore Debt Claims for ₹65 Crore The National Company Law Tribunal (NCLT) in Mumbai has approved a resolution plan allowing Essel Group promoter Subhash Chandra to settle personal guarantee claims worth ₹2,200.65 crore for a total of ₹65 crore. This decision marks a significant milestone in resolving the financial obligations tied to the Essel Group’s corporate debts, which were backed by Chandra’s personal guarantees. The tribunal’s approval ends a prolonged legal battle involving public and private sector lenders who had sought repayment through the personal guarantees of the promoter. The resolution plan, which was cleared under personal insolvency proceedings, outlines a structured approach to distribute the ₹65 crore payout. Subhash Chandra will make installment payments to the debt resolution professional, who will then allocate the funds to creditors based on their voting share in the committee of creditors. This structured timeline aims to ensure a systematic resolution of the outstanding claims while adhering to legal frameworks governing corporate insolvency. The approval of the settlement has been described as a landmark decision, particularly in the context of high-value personal guarantee cases involving prominent promoters. Legal experts have noted that the NCLT’s endorsement sets a precedent for similar cases, offering a framework for resolving complex disputes where promoters’ personal assets are tied to corporate liabilities. The tribunal’s order effectively closes the insolvency proceedings, allowing the resolution professional to execute the payout mechanism and finalize the settlement. The settlement represents a drastic reduction in the amount owed to lenders, with the ₹65 crore payout accounting for less than 3% of the total validated claims.#mumbai #nclt #subhash_chandra #essel_group #resolution_plan
