Canara Bank, Union Bank UK and LIC Housing Finance will challenge NCLT's approval of Subhash Chandra's ₹6.25 crore repayment plan.
The three lenders had voted against the plan, which was cleared by other creditors holding 80.81% voting share.
All three lenders said they will now approach the NCLAT for appeal.
Canara Bank, LIC Housing Finance To Appeal NCLT's Approval Of Chandra's Insolvency Plan
LIC Housing Finance also confirmed it had voted against the plan and said it would file an appeal before the NCLAT along with the other public financial institutions
Subhash Chandra Zee
Summary
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Three public sector lenders, Canara Bank, Union Bank of India (UK) and LIC Housing Finance, will move the National Company Law Appellate Tribunal (NCLAT) against the National Company Law Tribunal's (NCLT) approval of a repayment plan submitted by Zee Enyertainment Chairman Emiretus Subhash Chandra in a personal insolvency case filed by Indiabulls Housing Finance.
The three lenders had voted against the ₹6.25 crore repayment plan when it came up before creditors, according to separate statements issued by the banks.
Canara Bank said it held a 1.60% voting share in the matter, while Union Bank of India (UK) and LIC Housing Finance held 0.76% and 6.09%, respectively. Despite their opposition, the plan was approved after other private creditors, holding a combined 80.81% voting share, voted in its favour, Canara Bank said.
"Bank is filing appeal in NCLAT against the NCLT order," Canara Bank said in its statement.
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Lenders To Move NCLAT
Union Bank of India (UK) said it had, along with Canara Bank and LIC Housing Finance, opposed the resolution plan and had pleaded before the NCLT against its approval. The bank said it would now challenge the NCLT's decision before the NCLAT.
LIC Housing Finance also confirmed it had voted against the plan and said it would file an appeal before the NCLAT along with the other public financial institutions.
The NCLT approved the repayment plan despite objections from the three lenders, after it secured the required majority backing from other financial creditors.