The National Company Law Tribunal (NCLT) on Tuesday put its earlier order on hold that allowed Zee Group founder Subhash Chandra to settle his personal insolvency case by paying Rs 6.25 crore.

The proposed payment was significantly lower than the Rs 22,006.57 crore in admitted claims against him. The tribunal also barred Chandra from selling, transferring or otherwise disposing of his assets.

A five-member special bench headed by tribunal chief Anupinder Singh Grewal said the earlier repayment plan did not have a clear majority. The bench therefore stayed the order that had approved the settlement.

NCLT case remains unresolved

The insolvency case has remained stuck for nearly a year because of conflicting orders from different tribunal members. In September 2025, a two-member NCLT bench delivered a split verdict. One member supported the repayment plan, while the other rejected it.

The member opposing the plan raised concerns over irregularities in the admission of creditor claims and the voting process. The tribunal then referred the matter to a third member for a deciding opinion.

On August 25, third member Nilesh Sharma approved the repayment plan. However, he excluded certain disputed claims and ordered the redistribution of their share among eligible creditors.

The third member's decision failed to create a clear majority when it was read alongside the earlier split verdict. This prompted the NCLT to form a five-member special bench to examine the matter.

Special bench stays August 25 order

After examining all three previous orders, the five-member bench concluded that there was no clear majority that could legally support the repayment plan.

“It is manifest that as per Section 419 (5) of the Companies Act, 2013, there is no clear majority view capable of being given effect to; therefore, the order dated Aug 25 of the third member Nilesh Sharma, member (judicial), is stayed. We also direct that the personal guarantor shall not alienate any assets whatsoever either directly or indirectly. Let notice be issued to the parties in all the IAs (interim applications). Reply, if any, may be filed before the next date of hearing.”

The tribunal also directed that Chandra, described as the personal guarantor in the proceedings, must not alienate any of his assets either directly or indirectly.

The NCLT has listed the matter for further hearing on September 23, around three weeks from Tuesday's hearing.

Lenders challenge repayment plan before NCLAT

The dispute has also moved to the National Company Law Appellate Tribunal (NCLAT).

Some lenders who opposed the repayment plan have challenged it before the appellate tribunal.

During the proceedings, the solicitor general sought one day's time to determine whether the dissenting lenders wanted to continue with their appeal.

The latest NCLT order means the proposed Rs 6.25 crore settlement remains on hold while the tribunal considers the conflicting decisions and the objections raised by creditors.