HDFC Bank opposes Subhash Chandra repayment plan, may appeal NCLT order

New Delhi [India], August 27 (ANI): HDFC Bank has opposed the repayment plan approved by the National Company Law Tribunal in the personal insolvency proceedings involving Subhash Chandra and said it is exploring the possibility of filing an appeal before the NCLAT.
In a statement, HDFC Bank said its admitted claim in the matter was only 3.2 per cent of the total stated claim amount. The bank also clarified that the facility involved in the proceedings was inherited by the HDFC Bank from HDFC Ltd.
The bank said it had opposed the resolution and voted against the repayment plan, which was nevertheless approved by the majority of creditors.
"With regard to the referred NCLT matter, HDFC Bank's admitted claim was only 3.2 per cent of the total stated claim amount," the bank said.
The development comes after the NCLT approved Chandra's repayment plan in the long-running insolvency proceedings.
The National Company Law Tribunal approved a personal insolvency repayment plan for Zee Group founder Subhash Chandra, allowing him to settle Rs 22,006.57 crore in creditor claims for just Rs 6.5 crore.
Chandra has maintained that the insolvency proceedings relate to personal guarantees he had provided for loans taken by companies associated with the Essel Group, rather than money personally borrowed by him.
He has also disputed the interpretation of the claims involved in the proceedings. Chandra said claims filed in the insolvency process totalled about Rs 22,006 crore, of which Rs 21,696 crore were admitted. However, he said lenders that had objected to his repayment plan had claims of Rs 3,992 crore, of which Rs 620 crore had already been settled, leaving Rs 3,372 crore.
Chandra has also defended the Rs 6.5-crore repayment plan, citing his personal assets of Rs 31.79 crore in 2024, including a residential property valued at around Rs 25 crore.
He said the borrowing entities for which he had provided personal guarantees had repaid Rs 43,000 crore so far and had assured lenders that they would settle any remaining amounts.
The matter had earlier seen a difference of opinion between two members of the tribunal and was referred to a Third Member.
The Third Member held that the repayment plan met the requirements for approval under Section 114 of the Insolvency and Bankruptcy Code. The tribunal also held that objections raised by creditors did not provide sufficient grounds to reject the plan.
Under the approved plan, dissenting creditors covered by it would be bound by its terms. The NCLT also directed that two individuals be removed from the creditor list and that the amount allocated to them be redistributed among eligible creditors.
HDFC Bank's latest statement now adds another legal dimension to the case, with the lender indicating that it could challenge the NCLT's approval before the appellate tribunal. The bank, however, has only said it is exploring filing an appeal at the NCLAT and has not stated that an appeal has already been filed. (ANI)