Union Bank of India and Canara Bank will challenge the National Company Law Tribunal's approval of a resolution plan in the personal insolvency proceedings against Essel Group Chairman Dr Subhash Chandra, according to a media statement released on Saturday.
Indiabulls Housing Finance Ltd had initiated the personal insolvency proceedings against Chandra.
The statement said Union Bank of India (UK), along with creditors including Canara Bank and LIC Housing Finance Ltd, had rejected the resolution plan and urged the NCLT not to approve it.
The tribunal, however, approved the plan after it received the requisite majority vote from certain private-sector creditors, the statement said. Union Bank of India will now challenge the NCLT order before the National Company Law Appellate Tribunal, it added.
Media statement pic.twitter.com/smWIJCuexA
— Union Bank of India (@UnionBankTweets) August 29, 2026
ALSO READ: 'Not Rs 22,000 Crore': Subhash Chandra Clarifies On Claims Of 99.97% Debt Haircut Via NCLT
Canara Bank also posted their statement via X.
Media Statement: Canara Bank's statement on NCLT ruling regarding Dr Subhash Chandra's repayment plan. pic.twitter.com/kR3xOF7S8R
— Canara Bank (@canarabank) August 29, 2026
HDFC Bank on Thursday said that it is mulling an appeal against the bankruptcy court NCLT's order in the case involving Subhash Chandra. The bank said only 3.2% of the total claim amount has been admitted under the National Company Law Tribunal (NCLT) order in the matter. HDFC Bank's total claim was Rs 680 crore.
"HDFC Bank had opposed and voted against this resolution, which was approved by the majority. The Bank is exploring filing an appeal at the NCLAT (National Company Law Appellate Tribunal)," HDFC Bank said in a statement.
HDFC Bank said it had inherited the loan facility from its parent, HDFC, before the bank's merger. The bank's response comes a day after an NCLT ruling in the matter triggered controversy, as lenders had to take steep haircuts and are seen to be getting a negligible sum against their claims.
Subhash Chandra Case
The insolvency tribunal NCLT approved a repayment plan under which media baron Subhash Chandra will pay just Rs 6.5 crore to settle admitted creditor claims of about Rs 22,006.57 crore in his personal insolvency resolution process, translating into a haircut of nearly 99.97% for lenders. Under the plan, about Rs 6.5 crore will be available for distribution against admitted creditor claims of Rs 22,006.57 crore, translating into a recovery of roughly 0.03% and a haircut of nearly 99.97%.
ALSO READ: Subhash Chandra Plans Switzerland Job After Rs 22,006 Crore Debt Resolution
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