Archive · 28 Aug 2026
HDFC Bank Weighs NCLAT Appeal Over Subhash Chandra Debt Settlement
A tribunal approved a plan to settle debts connected to Subhash Chandra.
The plan gives creditors Rs 6.25 crore, while Rs 25 lakh will pay the costs of the insolvency process.
The claims recorded in the case were reported as more than Rs 22,000 crore.
This means creditors would receive only a very small part of the money they say they are owed.
HDFC Bank disagreed and voted against the plan.
Other creditors holding 80.81% of the voting share supported it.
HDFC Bank is considering asking a higher tribunal to review the decision.
Chandra’s office says the claims against him personally were much lower and that some amounts had already been settled.
The approved plan is intended to apply even to creditors who opposed it.
The NCLT approved a plan distributing Rs 6.25 crore to creditors and Rs 25 lakh toward insolvency costs.
Against admitted claims of Rs 22,006.57 crore, the plan implies recovery of about 0.028% and a nearly 99.97% haircut.
Creditors representing 80.81% of the voting share supported the plan, while HDFC Bank and several other lenders opposed it.
HDFC Bank said its admitted claim was 3.2% of the stated total and that it is exploring an appeal before the NCLAT.
Chandra’s office disputed the claims figure, citing Rs 3,992 crore in personal-guarantor claims, Rs 620 crore settled, and a further Rs 1,063 crore offered.
- Who
- Subhash Chandra, HDFC Bank, other financial creditors, and India’s insolvency tribunals are involved.
- What
- The National Company Law Tribunal approved Chandra’s personal-insolvency repayment plan, while HDFC Bank is considering an appeal.
- When
- Proceedings began in 2022, the insolvency plea was admitted in 2024, and Nilesh Sharma supported approval on August 25; the order was reported on Thursday.
- Where
- The case is before India’s National Company Law Tribunal and could proceed to the National Company Law Appellate Tribunal.
- Why
- The plan received the required majority support, and the tribunal concluded that rejecting it was unlikely to produce better recovery based on Chandra’s asset valuation.
Plan Opponents and Chandra’s Office
Plan Supporters and Tribunal
Size of repayment
Plan Opponents and Chandra’s Office
HDFC Bank, LIC Housing Finance, Axis Bank, Canara Bank, RBL Bank, and Union Bank of India opposed the plan. LIC Housing Finance called it “unviable and unlawful” because its Rs 1,322.39-crore claim would yield about Rs 38.09 lakh.
Plan Supporters and Tribunal
Creditors representing 80.81% of the voting share backed the plan. The NCLT said Chandra’s personal assets were worth significantly less than the amount offered and that rejecting the plan was unlikely to improve recovery.
Total claims
Plan Opponents and Chandra’s Office
Chandra’s office said the claim against him as a personal guarantor was Rs 3,992 crore, not Rs 22,006 crore. It said Rs 620 crore had been settled and borrowing entities had offered a further Rs 1,063 crore.
Plan Supporters and Tribunal
The insolvency proceedings cited Rs 22,006.57 crore in stated claims and, in one account, Rs 21,696 crore in admitted claims. The case also involved approximately Rs 22,000 crore in total guarantees.
Approval and appeal
Plan Opponents and Chandra’s Office
HDFC Bank voted against the resolution and is exploring an appeal before the NCLAT. Some creditors questioned claim verification, forensic examination, and the participation of entities they alleged were connected to Chandra.
Plan Supporters and Tribunal
Nilesh Sharma, appointed after the original two-member bench issued a split verdict, supported approval. The NCLT said the required majority’s commercial decision should not be replaced and that the plan would bind dissenting creditors.
- Creditor distribution
- Rs 6.25 crore
- Insolvency costs
- Rs 25 lakh, bringing the total plan amount to Rs 6.5 crore
- Claims recorded
- Rs 22,006.57 crore in stated claims; one account cited Rs 21,696 crore as admitted claims
- Estimated recovery
- About 0.028%, or roughly 28 paise for every Rs 1,000 owed
- Estimated haircut
- Nearly 99.97%
- Plan support
- Creditors representing 80.81% of the voting share backed the plan
- HDFC Bank claim
- HDFC Bank said its admitted claim represented 3.2% of the total stated amount
- Case origin
- The proceedings originated from a Rs 170-crore loan to Vivek Infracon that Chandra personally guaranteed
