The challenge concerns an NCLT order clearing the personal insolvency plan of Chandra, chairman of the Essel Group. The two banks opposed the plan and have now taken their objections to the appellate tribunal.

Under the proposed settlement, Chandra would pay Rs 6.5 crore towards creditors’ claims. The supplied report does not give the total value of those claims or say how much each creditor would receive. It therefore does not establish the recovery percentage for either bank.

The lenders’ objection centres on five entities connected to Chandra’s family. They alleged that these entities improperly influenced voting on the plan. This is the lenders’ allegation; the supplied report does not provide an appellate finding on it or explain the entities’ individual voting shares.

NCLT approved the plan, and that approval is now being contested before NCLAT. The report does not state a hearing date, an appellate decision or whether the approval has been stayed. The stated development is the banks’ challenge, not a reversal of the original order.