Subhash Chandra: “NCLT has the right to declare Subhash Chandra insolvent”

National Companies Court (NCLT) said Subhash Chandra that he has the authority to declare him insolvent after the media mogul challenged the tribunal’s jurisdiction to rule on a personal insolvency suit filed.

ET reviewed the content of the NCLT order. The house’s financier said that Chandra was personally responsible for repaying a loan of 170 crores, which was received by a real estate company not directly related to him, and for which he acted as a guarantor.

ET first reported on March 10 that Indiabulls Housing Finance had filed an insolvency case against Chandra, alleging that he had personally guaranteed loans taken by the company that borrowed the money from her. According to the statements of the financier, the personal guarantee agreement was signed in December 2018. The financier told the court that since the terms of the loan had not been met by the borrower, he was relying on a guarantee provided by Zee Group founder.

Indiabulls Housing Finance is represented by Senior Attorney Krishnendu Datta in the trial.

Chandra’s attorney, Arun Katpaliya, argued that under the Insolvency and Bankruptcy Code, individual insolvency should be dealt with by the debt collection courts, not by the NCLT.

However, NCLT judges Abni Ranjan Kumar Sinha and L. N. Gupta dismissed Chandra’s claim and appointed Raj Kamal Saraogi as a professional resolution to study indiabullclaims.

“Disputes with Indiabulls Housing Finance have been pending in arbitration since 2019,” Subhash Chandra’s office said in a statement. “The issue in the NCLT is also under discussion. Since the issues are under consideration, we would not like to comment on this matter.”