Union Bank, LIC Housing Fin, Canara Bank challenge NCLT nod to Subhash Chandra resolution plan

Canara Bank, Union Bank of India (UK) Ltd and LIC Housing Finance Ltd will challenge the National Company Law Tribunal’s (NCLT) approval of a repayment plan submitted by Dr Subhash Chandra in a personal insolvency case filed by Indiabulls Housing Finance Ltd.

The three public sector lenders had opposed and voted against the repayment plan, which was submitted for ₹6.25 crore, according to statements issued by the banks.

Canara Bank said it had a 1.60% voting share, while Union Bank of India (UK) Ltd and LIC Housing Finance had voting shares of 0.76% and 6.09%, respectively.


Also read: Zee's Subhash Chandra claims he has Rs 6.5 crore left, lives on rental income amid NCLT's 99.97% loan haircut row

The plan was approved by other private creditors holding an aggregate 80.81% voting share, Canara Bank said.

“However, the repayment plan was approved by other private creditors with majority vote (80.81% voting share),” the bank said.

Canara Bank also said it had demanded a forensic audit, but this was not allowed because of its minority voting share.

“Bank is filing appeal in NCLAT against the NCLT order,” Canara Bank said.

Union Bank of India (UK) Ltd had earlier said it, along with Canara Bank and LIC Housing Finance, rejected the resolution plan and pleaded before the NCLT against its approval. The bank said it was immediately challenging the NCLT decision before the National Company Law Appellate Tribunal (NCLAT).

Also read: How and why Zee founder Subhash Chandra's Rs 22,006 crore debt was chopped to just Rs 6.5 crore

LIC Housing Finance also said it had voted against the repayment plan and would immediately file an appeal before the NCLAT along with other public financial institutions.

The NCLT's approval came despite the opposition from the three public sector lenders, with the plan securing the required majority from other financial creditors.