Union Bank plans to challenge the NCLT-approved Subhash Chandra resolution plan, which offers ₹6.5 crore against ₹22,006.57 crore in admitted creditor claims.

Union Bank To Challenge NCLT |

Mumbai: Union Bank of India plans to challenge the s approval of the resolution plan in the personal insolvency proceedings involving Essel Group Chairman Dr Subhash Chandra.

The bank is expected to approach the National Company Law Appellate Tribunal (NCLAT), according to a media statement issued on Saturday.

Media statement pic.twitter.com/smWIJCuexA

— Union Bank of India (@UnionBankTweets) August 29, 2026

Lenders Opposed Resolution Plan

The personal insolvency proceedings against Chandra were initiated by Indiabulls Housing Finance Ltd.

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Union Bank of India (UK), along with Canara Bank and LIC Housing Finance, had rejected the proposed resolution plan and urged the NCLT not to approve it.

The tribunal, however, cleared the plan after it secured the required majority support from certain private-sector creditors.

HDFC Bank Weighs Appeal

HDFC Bank has also indicated that it could challenge the NCLT order. The lender said only 3.2 per cent of its total claim had been admitted under the tribunal's order. Its overall claim stood at ₹680 crore.

"HDFC Bank had opposed and voted against this resolution, which was approved by the majority. The Bank is exploring filing an appeal at the NCLAT (National Company Law Appellate Tribunal)," HDFC Bank said in a statement.

The bank said the loan facility was inherited from its erstwhile parent HDFC before their merger.

Lenders Face Nearly 99.97% Haircut

The case has attracted attention because of the steep reduction creditors face under the approved repayment plan.

The NCLT-approved plan provides for around ₹6.5 crore to settle admitted creditor claims of approximately ₹22,006.57 crore.

That translates into a recovery of only around 0.03 per cent for creditors and a haircut of nearly 99.97 per cent.

Union Bank’s proposed NCLAT challenge could now bring the controversial resolution plan under further judicial scrutiny.

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