NCLT Settlement Sparks Concern as HDFC Bank Considers NCLAT Appeal

HDFC Bank is exploring an appeal before the National Company Law Appellate Tribunal (NCLAT) against a ruling by the National Company Law Tribunal (NCLT) that approved a settlement proposed by Zee Group founder Subhash Chandra. The settlement reportedly allows claims exceeding ₹22,006.57 crore to be resolved for just ₹6.5 crore, representing a recovery of roughly 0.03% of the amount claimed by creditors.

In a statement reported by The Economic Times on August 27, HDFC Bank said its admitted claim amounted to ₹680 crore, or 3.2% of the total stated amount. The lender said the facility had originally been provided by its erstwhile parent, HDFC Limited, and was subsequently inherited by HDFC Bank following the merger. The bank also clarified that it had opposed the proposed settlement and voted against the resolution, which was approved by a majority of creditors. HDFC Bank is now evaluating legal options, including an appeal before the NCLAT.