The order was handed by Nilesh Sharma, Member (Judicial), appearing because the third member on the bench after the unique two-member NCLT bench delivered a cut up verdict on the matter on September 3, 2025. Sharma was introduced in following a reference made by the NCLT President in February 2026 to resolve the distinction of opinion between the judicial and technical members. His order successfully breaks the tie in favour of approving the plan.
The reimbursement plan was earlier accredited by collectors with 80.814% voting help at a gathering held in November 2024, comfortably above the three-fourths threshold required beneath the Insolvency and Chapter Code (IBC). Collectors who voted in opposition to the plan, together with LIC Housing, HDFC Financial institution, Axis Financial institution, Canara Bank, RBL Financial institution, IDBI Trusteeship (Franklin Templeton Fund) and Union Financial institution, collectively held lower than 20% of the voting share.
Beneath Part 115 of the IBC, the accredited plan will now bind all collectors, together with those that voted in opposition to it. In its order, the tribunal famous that dissenting collectors have been unlikely to recuperate extra by rejecting the plan, given the decision skilled’s valuation exhibiting Chandra’s property is price considerably lower than the quantity on provide.
The tribunal rejected a number of of the objections raised by dissenting collectors. It discovered no materials violation within the course of by which the reimbursement plan was accredited by the collectors’ assembly. It additionally turned down the argument that the vote in favour of the plan had been skewed by entities allegedly related to Chandra, holding that the disputed entities didn’t meet the statutory definition of “affiliate” beneath Part 79(2)(g) of the IBC, and that this definition couldn’t be widened by a purposive interpretation.
Collectors had additionally pointed to a pointy hole between Chandra’s historic and present internet price. Internet price certificates furnished in earlier years had positioned his internet price at roughly ₹45,888 crore (2017, RBL Financial institution) and ₹40,562 crore (2018, Canara Bank), in opposition to a present disclosed internet price of about Rs 31.79 crore. The tribunal held that this hole, by itself, didn’t set up concealment or diversion of belongings, and that appointing a forensic auditor was not a compulsory precondition for approving a reimbursement plan beneath the Code.
The plan has been accredited topic to 1 modification: claims filed by Anil Kumar and Sunil Jain, on behalf of 1,260 people, are to be excluded from the ultimate checklist of collectors, with the decision skilled directed to redistribute the reimbursement quantity among the many remaining eligible collectors accordingly.
The matter will now return to the unique two-member NCLT bench for a proper order to be handed by way of the bulk opinion, beneath Part 419(5) of the Firms Act, 2013.
The case traces again to 2022, when Indiabulls Housing Finance Restricted first moved an utility beneath Part 95 of the IBC in search of to provoke insolvency proceedings in opposition to Chandra as a private guarantor. After a interval throughout which the proceedings have been saved in abeyance following an interim order of the Supreme Court docket, the courtroom vacated its keep, and the NCLT admitted Chandra into the non-public insolvency decision course of in April 2024
Vijay Mallya Reacts
If True many congratulations to my buddy Subhash.Banks and Authorities have admitted having recovered Rs 14,100 crores from me in opposition to a Judgement debt of Rs 6203 crores. Many extra debtors have settled at a fraction. Indian Debt Decision Justice I presume. No media questions. pic.twitter.com/5uwxYSAX8H
— Vijay Mallya (@TheVijayMallya) August 26, 2026
Fugitive businessman Vijay Mallya reacted to this improvement. He took to X to say the next.
“If True many congratulations to my buddy Subhash. Banks and Authorities have admitted having recovered Rs 14,100 crores from me in opposition to a Judgement debt of Rs 6203 crores. Many extra debtors have settled at a fraction. Indian Debt Decision Justice I presume. No media questions.”
Vijay Mallya left India on March 2, 2016. He left India for the UK as a gaggle of Indian banks, lots of them publicly owned, closed in on him over unpaid loans tied to Kingfisher Airways.
(With inputs from PTI)
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First Revealed: Aug 27, 2026 7:55 AM IST
