Essel Group chairman Subhash Chandra assures lenders on debt repayment, says borrowers promise settlement of Rs 4,262 crore

The National Company Law Appellate Tribunal (NCLAT) will on Tuesday hear a challenge by several financial institutions against the National Company Law Tribunal’s (NCLT’s) approval of a repayment plan submitted by Essel Group founder Subhash Chandra in his personal insolvency proceedings.

The appeal was mentioned urgently before the appellate tribunal on Monday by Solicitor General Tushar Mehta, representing lenders including LIC Housing Finance, HDFC Bank and Union Bank of India. The NCLAT agreed to list the matter for hearing on Tuesday at 10.30 am.

The lenders are seeking to overturn an NCLT order that effectively allows Chandra to settle the claims admitted in his personal insolvency proceedings with a payment of Rs 6.25 crore to creditors, besides Rs 25 lakh towards the insolvency process. The admitted claims before the tribunal stood at about Rs 22,006.57 crore.