The lenders had opposed the repayment plan.
The plan was approved with the support of other financial creditors, which accounted for 80.81% of the voting share.
“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.
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”
Canara Bank
“Canara Bank’s statement on NCLT ruling regarding Dr Subhash Chandra’s repayment plan:
Canara Bank (1.60% voting share) alongwith other public sector entities Union Bank of India (0.76% voting share) and LIC Housing Finance Ltd (6.09% voting share) opposed and voted against the repayment plan submitted by Dr Subhash Chandra for Rs 6.25 crore. However, the repayment plan was approved by other private creditors with majority vote (80.81% voting share).
In fact, Canara Bank demanded for forensic audit but the same could not be allowed in view of our minority voting share.
Bank is filing appeal in NCLAT against the NCLT order.”
HDFC Bank
“HDFC Bank’s statement on NCLT ruling regarding Mr Subhash Chandra’s repayment plan
With regard to the referred NCLT matter, HDFC Bank’s admitted claim was only 3.2% of the total stated claim amount. The Bank inherited this facility which was previously provided by HDFC Limited.
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.”
LIC Housing Finance
“LIC Housing Finance Limited (LIC HFL) and other public financial institutions, including Canara Bank and Union Bank of India (UK) Ltd., voted against the Repayment Plan proposed by Dr. Subhash Chandra. The Plan was ultimately approved on account of the votes cast in favour of the Repayment Plan by the other Financial Creditors, aggregating to 80.81%.
LIC HFL will immediately file an appeal before the Hon’ble NCLAT, along with the other public financial institutions”
