The National Company Law Tribunal (NCLT) has issued a notice to former Unitech directors Ajay Chandra and Ramesh Chandra in a personal insolvency case related to an outstanding loan from IDBI Bank. IDBI Bank filed petitions against the two directors under the Insolvency and Bankruptcy Code (IBC) to recover the debt of Rs 1,238 crore owed by a Unitech subsidiary. The petition was filed after Unitech’s default on the loan, and the bank sought to hold the directors personally responsible for the debt. The NCLT has directed Ajay and Ramesh Chandra to respond to the petitions within 10 days. If the petition is admitted, the NCLT will appoint an interim resolution professional to oversee the insolvency resolution process and try to recover the outstanding amount. This is another instance of banks using the IBC to recover debt from defaulting corporate promoters.
