HDFC Bank Weighs Appeal Against Subhash Chandra Insolvency Settlement
What Happened
HDFC Bank is considering approaching the National Company Law Appellate Tribunal (NCLAT) against an NCLT-approved insolvency repayment plan for Essel Group founder Subhash Chandra. The plan allows Chandra to settle admitted creditor claims of about ₹22,006 crore by paying ₹6.5 crore, a move the bank opposed and voted against. HDFC Bank said its own admitted claim was ₹680 crore, representing 3.2% of the total admitted claims.
Key Takeaways
The case has reignited debate over recoveries under India's insolvency framework, with lenders objecting to the extremely low payout approved under the plan. HDFC Bank's proposed appeal could lead to further legal scrutiny of how personal guarantor insolvency cases are resolved.