Union Bank, Canara Bank and LIC Housing Finance to challenge NCLT’s decision allowing Zee Group Founder Subhash Chandra’s repayment plan

Subhash Chandra – Photo Credit: AKHILESH KUMAR

Lenders such as Union Bank of India (UK) Ltd, Canara Bank and LIC Housing Finance Ltd have decided to challenge the National Company Law Tribunal’s recent decision allowing Zee Group Founder and Chairman Subhash Chandra’s repayment plan to pay just ₹6.5 crore against admitted claims of ₹22,006.57 crore.

Key Takeaways

• Union Bank of India (UK), Canara Bank and LIC Housing Finance will challenge an NCLT ruling allowing Subhash Chandra to repay just Rs 6.5 crore against Rs 22,006.57 crore in admitted claims.
• The lenders will appeal to the NCLAT, arguing the plan gives them only 0.03% recovery of their dues.
• Canara Bank, holding a 1.60% voting stake, said its request for a forensic audit was denied due to its minority position.
• The NCLT approved the plan due to majority backing from certain private creditors despite public-sector lender objections.

These lenders will challenge the NCLT’s decision in the National Company Law Appellate Tribunal (NCLAT) as they are aggrieved by the former’s decision, which gives them a recovery of just 0.03 per cent of their admitted dues. 

Referring to the matter of personal insolvency case filed by Indiabulls Housing Finance Ltd against Subhash Chandra, Union Bank of India, in a statement, said its wholly-owned UK subsidiary “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, it added. Now, Union Bank of India (UK) Ltd is immediately challenging the decision of NCLT before NCLAT, per the statement. 

Canara Bank, in its statement, said the bank (1.60 per cent voting share) along with other public sector entities Union Bank of India (0.76 per cent voting share) and LIC Housing Finance (6.09 per cent voting share) opposed and voted against the repayment plan submitted by Chandra for ₹6.25 crore.  

However, the repayment plan was approved by other private creditors with majority vote (80.81 per cent voting share), it added. 

Forensic Audit Demanded

“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,” the public sector bank said. 

LIC Housing Finance Ltd, in its statement, noted that it and other public financial institutions, including Canara Bank and Union Bank of India (UK) Ltd., voted against the repayment plan proposed by Chandra. The plan was ultimately approved due to the votes cast in favour of the repayment plan by the other financial creditors, aggregating to 80.81 per cent. 

LIC HFL said it will immediately file an appeal before the NCLAT, along with the other public financial institutions. 

HDFC Bank, in its statement a couple of days back, observed that its admitted claim was only 3.2 per cent of the total stated claim amount. The bank inherited this facility which was previously provided by HDFC Ltd.  

The bank said it had opposed and voted against this resolution, which was approved by the majority. It is exploring filing an appeal at the NCLAT. 

Published on August 29, 2026