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Informist, Monday, Aug. 31, 2026

 

--NCLAT agrees to hear Tue lenders' pleas in Zee Ent Subhash Chandra IBC case

 

NEW DELHI – The National Company Law Appellate Tribunal Monday agreed to hear Tuesday pleas by LIC Housing Finance Ltd., HDFC Bank, Union Bank of India (UK) Ltd. and others challenging the decision of a tie-breaker judge of the Delhi bench of the National Company Law Tribunal to approve an INR 65 million repayment plan submitted by Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises Ltd., for admitted claims of INR 220.07 billion in personal guarantor insolvency proceedings. Solicitor General of India Tushar Mehta, appearing for the lenders, said that if the tie-breaker judge's order is allowed to stand, it will defeat the very purpose of the Insolvency and Bankruptcy Code, 2016.

 

HDFC Bank had said in a statement that its admitted claim was only 3.2% of the total stated claim amount. HDFC Bank had opposed and voted against Chandra's repayment plan, which was approved by the majority, the bank had said. HDFC Bank had inherited the loan in question from erstwhile HDFC Ltd.

 

LIC Housing had said it had sanctioned financial facilities under two loan accounts in which Essel Group founder Chandra was the personal guarantor, and that it continues to retain all rights over the secured assets. LIC Housing reportedly had an admitted claim of INR 13.22 billion in the insolvency proceedings against Chandra. Under the approved repayment plan, however, LIC Housing was set to receive just INR 3.81 million.

 

Meanwhile, Chandra had clarified that the total claims against him as personal guarantor, in the personal insolvency proceedings, by the objectors of the plan amounted to only INR 39.92 billion and not INR 220.07 billion. Of these, a claim of INR 6.20 billion stood settled and further INR 10.63 billion was offered to be paid by the borrower entities, he said. The borrowing entities for whom Chandra has provided personal guarantees have till date repaid INR 430 billion, he had said. The borrowing entities have assured to settle any other amount which might have been left, he said.

 

In 2022, the tribunal had admitted Sammaan Capital Ltd.'s plea to start insolvency proceedings against Chandra. The company had moved the tribunal against Chandra after a default on a loan of INR 1.70 billion given to Vivek Infracon Pvt. Ltd. Chandra had provided personal guarantees for the loan. 

 

Canara Bank, Axis Bank, HDFC Bank, and LIC Housing Finance Ltd. had voted against Chandra's repayment plan and sought its rejection by the tribunal. The value proposed under the plan constitutes only 0.028% of the value of Chandra's assets, they said. According to them, as per a 2018 certificate, Chandra's net worth was INR 405.62 billion.

 

The banks which opposed the repayment plan also argued that the votes cast by creditor Veena Investments Pvt. Ltd. and its subsidiaries, Direct Media Distribution Ventures Pvt. Ltd. and World Crest Advisors LLP., ought not to have been considered by Chandra's resolution professional, as these entities fell within the category of associate parties of the personal guarantor. They said the resolution professional had failed to scrutinise the claims and voting rights of certain creditors before taking the plan into consideration for approval.

 

The division bench of the Delhi tribunal had differed on the approval of the resolution plan, after which the case was referred to a third judge. The third judge ruled in favour of the repayment plan. The matter was to be placed before the original division bench to pass appropriate orders in terms of the majority opinion, the tie-breaker judge had said. 

 

At 1219 IST, shares of Zee Entertainment Enterprises Ltd. were down 7.6% from Friday at INR 93.81 on the National Stock Exchange. Shares of HDFC Bank were up marginally at INR 720.90 while shares of LIC Housing Finance were down slightly at INR 534.00.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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