LIC Housing Finance, Canara Bank and Union Bank of India have opposed Essel Group chairman Subhash Chandra’s repayment plan in his personal insolvency case and will challenge its approval by the National Company Law Tribunal (NCLT) before an appellate tribunal.
The three organizations said they collectively accounted for 8.45 percent of the voting share in Chandra’s insolvency proceedings and opposed his repayment plan. “The plan was ultimately approved on account of the votes cast in favour of the repayment plan by the other financial creditors, aggregating to 80.8 per cent,” disclosed LIC Housing Finance.
The home financier said it will immediately file an appeal before the NCLAT, along with the other public financial institutions. Canara Bank also said it had opposed the repayment plan and will challenge the NCLT order before the appellate tribunal.
“Canara Bank (1.6 per cent voting share) along with other public sector entities Union Bank of India (0.76 per cent voting share) and LIC Housing Finance Ltd (6.09 per cent voting share) opposed and voted against the repayment plan submitted by Dr Subhash Chandra for Rs 6.25 crore,” the bank said. The bank also said it had sought a forensic audit, but its minority voting share prevented the request from being approved, and that it would appeal the NCLT order before the NCLAT.
Union Bank said it had also rejected the resolution plan along with other public sector entities and had opposed its approval before the NCLT. “However, due to a majority vote of certain private creditors, the same plan has been approved by NCLT,” it said.
The lenders’ statements come after the NCLT approved a repayment plan submitted by Chandra in his personal insolvency case filed by Indiabulls Housing Finance. Under the NCLT order, Chandra will pay Rs 6.5 crore to settle admitted creditor claims of more than Rs 22,000 crore.
Private lender HDFC Bank is also exploring filing an appeal. “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),” said a statement by the lender.
HDFC Bank said only 3.2 percent of its total claim amount had been admitted under the NCLT. The bank also said it had inherited the loan facility from its parent, HDFC, before the bank’s merger. ANI
