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Why NCLT approved Subhash Chandra’s Rs 6.5-crore proposal despite financial creditor rejection
Economic Times 2d ago·28 Aug 2026, 2:49 am
The National Company Law Tribunal (NCLT) has approved a resolution plan submitted by Subhash Chandra, which offers creditors a recovery of just Rs 6.5 crore. This sum represents a mere 0.03% of the total claims of Rs 22,006 crore. The approval was granted despite the rejection of the plan by financial creditors, who argued that the offer was too low. The tribunal's decision was based on the voting pattern among the committee of creditors, which ultimately favored the plan.
This development is significant for investors as it highlights the complexities of insolvency proceedings. The approval of a plan that offers a fraction of the owed amount can be a setback for creditors and raises questions about the fairness of the resolution process. Investors should watch for further updates on the implementation of this plan and its impact on the broader market.
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