Union Bank of India would contest the National Company Law Tribunal’s (NCLT) approval of a resolution plan in the personal insolvency proceedings against Essel Group Chairman Subhash Chandra, according to a statement issued on Saturday.Indiabulls Housing Finance Limited started the personal insolvency process against Chandra.As per the statement, Union Bank of India voted against the resolution plan and opposed its approval before NCLT, along with other creditors like Canara Bank and LIC Housing Finance Ltd (LIC HFL).“In the matter of personal insolvency case filed by Indiabulls Housing Finance Ltd against Subhash Chandra, Union Bank of India (UK) Limited 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,” it said.After obtaining the necessary majority support from some private-sector creditors, the tribunal approved the resolution plan in spite of their objections.Union Bank of India stated that it will now contest NCLT’s ruling before the National Company Law Appellate Tribunal (NCLAT).Related News: Explainer: Subhash Chandra, Mukesh Ambani clash over NCLT case, media coverageMeanwhile, LIC Housing Finance Ltd wrote on his X account, “LIC HFL and other public financial institutions, including Canara Bank and Union Bank of India (UK) Ltd, voted against the Repayment Plan proposed by Dr Subhash Chandra.”“The Plan was ultimately approved on account of the votes cast in favour of the Repayment Plan by the other Financial Creditors, aggregating to 80.81%. LIC HFL will immediately file an appeal before the Hon’ble NCLAT, along with the other public financial institutions,” read the post.The development comes after HDFC Bank is considering a similar action.HDFC Bank stated on Thursday that only 3.2 per cent of the whole claim of Rs 680 crore had been accepted under the tribunal’s verdict and that it was considering an appeal against the NCLT ruling.On August 25, Chandra’s repayment plan was approved by NCLT. Concerns have been voiced by the lenders regarding the scope of recoveries under the approved plan. In response to claims totalling approximately Rs 22,006.57 crore, creditors will receive Rs 6.25 crore under the plan, plus an additional Rs 25 lakh for insolvency-process expenses. Lenders have taken note of NCLT’s ruling due to the significant haircuts involvedHowever, Chandra has contested how the proceedings were described.Meanwhile, Chandra’s debt case is not the only where the haircut has been placed at 99 per cent, cases of 1,051 companies were finalised under IBC up to September 2024, with a total haircut of about Rs 7.89 lakh crore, as per the Insolvency and Bankruptcy Board of India (IBBI) report as on 30 September 2024.According to the IBB report, here are 5 biggest cases with over 60 per cent haircut ranked by admitted claims — with absolute amount creditors actually recovered.