HDFC Bank Plans Appeal Against Subhash Chandra's Settlement Order
New Delhi: HDFC Bank is planning to appeal against the bankruptcy court National Company Law Tribunal (NCLT)’s ruling that allowed Zee Group founder Subhash Chandra to settle claims worth over Rs 22,006.57 crore for a mere Rs 6.5 crore – a recovery rate of roughly 0.03% of what creditors were owed.
The bank, as reported by Economic Times, on Thursday (August 27) stated that its admitted claim was 3.2% of the total amount, Rs 680 crore, which it inherited from its erstwhile parent company, HDFC Ltd, prior to the merger of the two entities.
“With regard to the referred NCLT matter, HDFC Bank’s admitted claim was only 3.2% of the total stated amount. The bank inherited this facility, which was previously provided by HDFC Limited. HDFC Bank had opposed this settlement and voted against the resolution, which was approved by the majority. The bank is exploring an appeal at NCLAT,” the lender said in a statement.
Notably, the Mumbai-based court approved a repayment plan with a 99.97% haircut for lenders, rejecting objections, citing the debtor's estate value and potential future recovery.
The insolvency proceedings were initiated in 2024 following a petition by Indiabulls Housing Finance. Chandra had given a personal guarantee on the loan for Essel Group-linked companies, and the lender's move to NCLT for the bankruptcy proceedings led to claims of over Rs 22,000 crore from peers who also owed money.
While the NCLT verdict avoided the case from going into bankruptcy, creditors questioned whether the debtor’s assets and financial affairs had been examined deeply enough, including whether a forensic investigation should have been conducted, The Indian Express reported.
The tribunal, however, rejected this idea and reportedly emphasised the importance of the commercial decision of creditors. It held that where creditors have voted in accordance with the Insolvency and Bankruptcy Code, the tribunal will generally not substitute the decision with its own assessment.
"The commercial decision of the creditors operates within, and not outside, the statutory framework," the NCLT observed.
The repayment plan reportedly had the requisite support of creditors – about 80.81% of the voting share. Individual dissenting creditors then cannot simply withdraw and demand a different settlement.
"If the plan is approved and the debtor's insolvency is resolved, putting him back on his feet, the objectors would ultimately stand a better chance of recovering their debts directly from the Principal Debtors," the NCLT ruled.
Meanwhile, in a media statement issued on Saturday (August 29), Union Bank of India announced that it is "immediately challenging the decision of NCLT before NCLAT [National Company Law Appellate Tribunal]".
"In the matter of personal insolvency case filed by Indiabulls, Housing Finance Ltd against Dr Subhash Chandra, Union Bank of India (UK) Ltd along with other public sector undertakings like Canara Bank, LIC Housing Finance Ltd etc have rejected the resolution plan and pleaded before NCLT for not approving the same," Union Bank of India said.
It added: "However, due to majority vote of certain private creditors, the same plan has been approved by NCLT. Now, Union Bank of India (UK) Ltd is immediately challenging the decision of NCLT before NCLAT.
Media statement pic.twitter.com/smWIJCuexA
— Union Bank of India (@UnionBankTweets) August 29, 2026
This article is updated with the Union Bank of India media statement and republished at 4.17 pm on August 31, 2026.
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