PERSONAL INSOLVENCY · TIMELINE

Subhash Chandra: from a ₹170-crore guarantee to a 99.97% haircut

CP(IB)-97/(ND)/2022 · Indiabulls Housing Finance Limited (now Sammaan Capital) vs. Dr. Subhash Chandra, before the NCLT (New Delhi)
Admitted Claims
₹22,006.57 Cr
total creditor claims recorded
Repayment Offered
₹6.25–6.5 Cr
amount set aside for creditors
Effective Haircut
~99.97%
recovery of roughly 0.03%
BEFORE 2022
₹170-crore loan to Vivek Infracon turns bad
Subhash Chandra had personally guaranteed a ₹170-crore loan extended by Indiabulls Housing Finance Limited (IBHF) to Vivek Infracon. The loan subsequently turned non-performing, triggering recovery action against Chandra as the personal guarantor.
2022
Indiabulls moves the NCLT under Section 95, IBC
Indiabulls Housing Finance filed an application under Section 95 of the Insolvency and Bankruptcy Code to begin personal insolvency proceedings against Chandra as guarantor, registered as CP(IB)-97/(ND)/2022.
30 MAY 2022
NCLT rejects jurisdiction challenge, appoints a Resolution Professional
Chandra argued the NCLT lacked authority to decide an individual's insolvency. The tribunal rejected the argument and appointed a Resolution Professional (RP) to examine the case.
2022–2023
NCLAT appeal, a reported settlement that fell through, and a Supreme Court stay
Chandra challenged the NCLT order before the NCLAT; the appeal was closed after Indiabulls indicated a settlement had been reached, though the settlement did not ultimately materialise. Proceedings were also kept in abeyance under an interim Supreme Court order during this period.
Proceedings paused
NOVEMBER 2023
Supreme Court upholds the IBC's personal-guarantor framework
The Supreme Court upheld the relevant IBC provisions governing personal guarantor insolvency, clearing the legal hurdle that had stalled the case.
FEBRUARY 2024
Indiabulls revives the insolvency case
With the Supreme Court's ruling in place, Indiabulls Housing Finance moved to revive the personal insolvency proceedings against Chandra.
APRIL 2024
NCLT formally admits the personal insolvency plea
The NCLT admitted Chandra into the personal insolvency resolution process, moving the case into the repayment-plan stage. Indiabulls Housing Finance was renamed Sammaan Capital the same year.
Case admitted
2024–2025
Creditors vote on the repayment plan — Item B3
Creditors voted on the proposed Repayment Plan (Item B3). Reported figures put support at roughly 80.81% of voting share, with lenders including LIC Housing Finance, HDFC Bank, Axis Bank, Canara Bank, RBL Bank and Union Bank voting against.
3 SEPTEMBER 2025
Original two-member NCLT bench delivers a split verdict
Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri gave conflicting opinions on whether to approve the repayment plan, leaving the matter deadlocked.
Split decision
EARLY 2026
A third NCLT member is appointed to break the tie
The NCLT president appointed Member (Judicial) Nilesh Sharma as the third member to resolve the disagreement and decide the matter.
26 AUGUST 2026
Third member approves the repayment plan under Section 114, IBC
Nilesh Sharma approved the plan, rejecting objections from lenders including LIC Housing Finance that the proposed recovery was too small to justify approval. He also held the plan binds all creditors — including those who opposed or abstained — under Section 115 of the IBC.
Plan approved
WHAT'S NEXT
Case returns to the original bench for a formal order
The matter goes back to the original two-member NCLT bench, which will pass a formal order giving effect to the majority view under Section 419(5) of the Companies Act, 2013. The Resolution Professional has been directed to finalise the creditor list and distribute the settlement amount. Creditors retain the right to separately pursue recovery from the principal borrowers, securities, and other available assets.