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.
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 NCLT approval of a repayment plan submitted by Zee Entertainment Chairman Emiretus Subhash Chandra in a personal insolvency case filed by Indiabulls Housing Finance, as per inputs from ANI.
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.
1 August 2026
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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.
Notably, HDFC Bank, which had also voted against the plan, said it is weighing a similar appeal. The bank said its admitted claim stood at only 3.2% of the total stated amount, a facility it had inherited from HDFC following the two entities' merger in 2023.
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'HDFC Bank had opposed this settlement and had voted against this resolution, which was approved by the majority. The Bank is exploring filing an appeal at the NCLAT,' the bank said in its statement.
The proceedings relate to Chandra's personal insolvency in his capacity as a guarantor for loans taken by companies associated with the Essel Group. Indiabulls Housing Finance had moved the NCLT after the dues remained unpaid.
The NCLT approved the repayment plan despite objections from the three lenders, after it secured the required majority backing from other financial creditors.
