New Delhi, August 27, 2026 (Yes Punjab News)
HDFC Bank is exploring an appeal against an NCLT order approving a repayment plan that would allow Essel Group founder Subhash Chandra to settle admitted creditor claims of more than Rs 22,000 crore by paying only a fraction of the amount, the bank said on Thursday.
An HDFC Bank spokesperson said the lender’s admitted claim accounted for 3.2 per cent of the total amount involved and that the relevant loan facility had originally been extended by HDFC Limited and was subsequently inherited by HDFC Bank following the merger of the two entities.
“With regard to the referred NCLT matter, HDFC Bank’s admitted claim was only 3.2 per cent of the total stated amount. The Bank inherited this facility, which was previously provided by HDFC Limited,” the spokesperson said.
“The Bank is exploring filing an appeal at the NCLAT,” the spokesperson added.
The bank said the facility had already been provided for and came to HDFC Bank as part of the merger with HDFC Limited.
The insolvency tribunal earlier approved a repayment plan under Chandra’s personal insolvency resolution process under which he would pay Rs 6.5 crore against admitted creditor claims of approximately Rs 22,006.57 crore. The proposed settlement amounts to a haircut of nearly 99.97 per cent for creditors.
LIC Housing Finance, whose admitted claim stood at Rs 1,322.39 crore, had objected to the plan, pointing out that the proposed repayment to it was only Rs 38,09,294, equivalent to approximately 0.028 per cent of its admitted dues.
The NCLT order recorded the lender’s contention that such a negligible repayment should not have been approved.
NCLT Member (Judicial) Nilesh Sharma, acting as the third member in the matter, approved the repayment plan under Section 114 of the Insolvency and Bankruptcy Code (IBC), rejecting objections from lenders that the recovery offered was too low to justify approval.
The tribunal had reached a split verdict earlier, following which the NCLT President appointed Sharma as the third member to resolve the difference of opinion.
LIC Housing Finance had led objections from dissenting creditors, arguing that the proposed payout was “unviable and unlawful”. It had maintained that against admitted claims of around Rs 22,006.57 crore, the plan provided for only Rs 6.25 crore to creditors and Rs 25 lakh towards process costs.
HDFC Bank is exploring an NCLAT appeal against an NCLT order approving a 99.97% debt haircut for Essel Group founder Subhash Chandra.
FOLLOW NOW
