Indiabulls Housing Finance Limited Vs Dr. Subhash Chandra (NCLT Delhi)
Summary: The National Company Law Tribunal, New Delhi, Special Bench (Single Member) (Court-II), through Hon’ble Shri Nilesh Sharma, Member (Judicial), considered a reference made by the Hon’ble President, NCLT under section 419(5) of the Companies Act, 2013 read with Rule 60(2) and (3) of the NCLT Rules, 2016. The reference arose from a difference of opinion between the Judicial Member, Shri Ashok Kumar Bhardwaj, and Technical Member, Ms. Reena Sinha Puri, concerning the repayment plan in the insolvency resolution process of Dr. Subhash Chandra and connected applications.
Indiabulls Housing Finance Limited had instituted CP(IB)-97/ND/2022 under Section 95 of the Insolvency and Bankruptcy Code, 2016 against Dr. Subhash Chandra. After admission of the petition on 22.04.2024, Mr. Shiv Nandan Sharma replaced Mr. Raj Kamal Saraogi as Resolution Professional. The newly appointed RP filed I.A. No. 5505/2024 seeking approval of the Personal Guarantor’s repayment plan. The plan had received 80.814% of the vote. Several creditors opposed approval, chiefly challenging the composition of the voting creditors, alleged associate entities, claim verification, the RP’s conduct, asset disclosures, meeting notice and the treatment of STCI Finance Limited’s security.
The reference concerned the scope of the Adjudicating Authority’s jurisdiction under Sections 106, 112 and 114; whether further investigation, forensic audit or asset tracing was indispensable; whether disputed creditors were “associates” under Section 79(2)(g); whether the RP committed material statutory lapses; whether the meeting process and voting opportunity were adequate; whether the repayment plan complied with the Code and could bind dissenting creditors; and whether STCI Finance Limited’s position as a secured creditor attracted Section 110(5).
