HDFC Bank Weighs NCLAT Appeal After NCLT Approves Subhash Chandra’s Repayment Plan Offering Just 0.028% Recovery
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Private sector lender HDFC Bank is actively reviewing options to challenge the recent National Company Law Tribunal (NCLT) order approving the debt repayment plan of media mogul Subhash Chandra. The financial institution confirmed that it had consistently opposed the settlement proposal, joining other dissenting creditors who have raised serious concerns over the minimal recovery margins and the overall integrity of the approval process.
Disastrous Recovery Rates Spark Lenders' Outrage
Under the terms of the NCLT-approved repayment plan, lenders are slated to receive a total payout of merely ₹6.25 crore against a staggering ₹22,006.57 crore in approved claims. This translates to a dismal recovery rate of approximately 0.028%, effectively resulting in a near-total loss of 99.97% for the financial institutions involved.
HDFC Bank clarified that its approved claim accounted for roughly 3.2% of the total stated amount, having been acquired following its structural merger with HDFC Limited, which had originally issued the facility and maintained adequate provisioning. An official HDFC Bank spokesperson reiterated that the bank voted firmly against the settlement, though the proposal ultimately secured majority approval. Alongside other disgruntled financial institutions, the bank is now evaluating a formal appeal before the National Company Law Appellate Tribunal (NCLAT), citing profound discrepancies, lack of transparent claim investigations, and questions surrounding entities allegedly linked to Subhash Chandra participating in the voting process.
Judicial Split and Background of the Bankruptcy Proceedings
The resolution process saw significant internal friction, highlighted by a notable disagreement between two original NCLT bench members. To break the deadlock, a third member, Nilesh Sharma, was appointed to adjudicate the dissenting views. On August 25, the ruling was finalized in favor of approving the plan by majority opinion, which will soon be formally executed by the original bench.
The high-profile insolvency proceedings originated from a personal guarantee default tied to a ₹170 crore loan extended to Vivek Infracon. Following payment defaults, Indiabulls Housing Finance—now operating as Sammaan Capital—approached the NCLT in 2022, leading to the formal admission of the bankruptcy petition in 2024 and culminating in this controversial legal showdown.
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