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• The National Company Law Appellate Tribunal (NCLAT) has granted Mumbai-based Supreme Housing and Hospitality a final opportunity to settle outstanding dues of INR 567 crore owed to Canara Bank.
• The tribunal directed the company’s promoters to deposit INR 460 crore in a no-lien account with the bank by June 13, 2026.
• Failure to make the payment within the stipulated timeline will allow insolvency proceedings against the company to continue.
• The dispute follows multiple failed one-time settlement (OTS) attempts and prolonged litigation between the developer and the lender.
• Canara Bank has also initiated efforts to sell its loan exposure linked to the company through a debt sale process after previous recovery attempts remained unsuccessful.
The National Company Law Appellate Tribunal (NCLAT) has given Supreme Housing and Hospitality Pvt Ltd a final opportunity to settle its outstanding debt obligations with Canara Bank by directing the company’s promoters to deposit INR 460 crore in a no-lien account with the lender by June 13, 2026. The order comes amid ongoing insolvency proceedings involving the Mumbai-based real estate developer, which owes approximately INR 567 crore to the bank.
In its order, the appellate tribunal stated that one last opportunity should be provided to the company to discharge its debt. The NCLAT clarified that if the required amount is not deposited within the prescribed deadline, the interim protection granted to the company would automatically lapse, allowing the resolution professional to continue with the corporate insolvency resolution process.
The latest development marks the third opportunity granted to Supreme Housing and its promoters to resolve the dispute with creditors. Canara Bank had originally initiated insolvency proceedings against the company in 2020. The lender’s petition was admitted in November 2022, but the proceedings were subsequently closed after both sides entered into a one-time settlement arrangement. That settlement, however, was not completed, resulting in renewed recovery efforts by the bank.
During the past year, Supreme Housing submitted another settlement proposal under which it offered to settle the dues for INR 460 crore. According to court records and banking sources cited in the proceedings, the company did not fulfil its commitments under that proposal. Following the failure of the revised settlement plan, Canara Bank initiated a second insolvency process, which was admitted by the National Company Law Tribunal (NCLT) in May this year.
The insolvency matter relates to debt exposure exceeding INR 567 crore. Earlier tribunal filings indicated that the dispute originated from a term loan facility sanctioned by Canara Bank to Supreme Housing in 2014. Interest accumulation, repayment defaults and unsuccessful restructuring efforts contributed to the escalation of the outstanding dues.
Parallel to the legal proceedings, Canara Bank has been attempting to recover its exposure through debt sale mechanisms. The lender previously invited bids from financial institutions and asset reconstruction companies for the sale of its loan exposure linked to Supreme Housing. Earlier attempts to sell the stressed asset did not result in a successful transaction, prompting renewed efforts through subsequent sale processes.
According to documents associated with the latest recovery exercise, bids for the loan portfolio are expected to be submitted by mid-June. Banking sources indicated that the INR 460 crore amount proposed by the promoters broadly aligns with the valuation level being explored through the debt sale process, although Canara Bank has not formally accepted it as a concluded settlement.
The outcome of the June 13 deadline is expected to determine whether Supreme Housing can avoid insolvency proceedings or whether the corporate resolution process will move forward under the Insolvency and Bankruptcy Code.
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