MUMBAI: The National Company Law Appellate Tribunal (NCLAT) has granted the promoters of Supreme Housing and Hospitality an opportunity to settle their outstanding dues with Canara Bank by depositing a reduced amount of ₹460 crore into a no-lien account at the bank by June 13.
The Mumbai-based real estate firm carries a total debt of ₹567 crore to the bank.
The NCLAT stated, “We believe that the appellant should be given a final opportunity to clear its debt. The ₹460 crore must be deposited with the bank in a no-lien account by June 13, 2026. If the appellant fails to make the deposit, this interim order will be rescinded, and the resolution professional may proceed with the insolvency process.”
This is the third chance for the promoters of Supreme Housing to negotiate with their creditors. Canara Bank initiated insolvency proceedings against the company in 2020, which led to the admission of its petition in November 2022. However, those proceedings were closed after the parties entered into an incomplete one-time settlement.
Last year, Supreme Housing proposed a second one-time settlement to Canara Bank for ₹460 crore, but the company did not fulfill its financial obligations. Consequently, the bank initiated a second insolvency process, which was admitted in May this year.
A source familiar with the situation reported, “Canara Bank has now listed its entire loan exposure for an all-cash sale at ₹460 crore, down from the ₹470 crore offer set in February. While this proposal aligns with the bank’s expectations for asset reconstruction acquisitions, it cannot be officially categorized as a one-time settlement since the bank has yet to accept it. The ultimate outcome hinges on whether the company deposits the required amount.”
A document from BoB Capital Markets noted that bids for the loans are expected to be submitted by mid-June. This marks the third effort by Canara Bank to sell the loans following two unsuccessful attempts, the most recent being in February, when a reserve price of ₹470 crore was set.
