NCLAT Gives Supreme Housing Last Chance to Settle ₹567 Crore Debt with Canara Bank

The National Company Law Appellate Tribunal (NCLAT) has given Supreme Housing, a Mumbai-based real estate company, a final chance to settle its debt of ₹567 crore with Canara Bank.

NCLAT Offers Last Opportunity for Debt Settlement

The NCLAT has directed Supreme Housing to deposit ₹460 crore in a no-lien account with the bank by June 13, 2026, in a bid to settle its debt. This is the third chance for the company’s promoters to settle with creditors.

Canara Bank had initiated insolvency proceedings against Supreme Housing in 2020 and secured admission of its petition in November 2022. However, the proceedings were later closed after both parties entered into a one-time settlement, which was not completed.

Failed Settlement Attempts

Last year, Supreme Housing had submitted a second one-time settlement proposal to Canara Bank to settle dues for ₹460 crore, but the company failed to honour its commitment. The bank then initiated a second insolvency process, which was admitted in May this year.

Market Impact and Details

• Canara Bank has put up its entire loan exposure for sale on an all-cash basis for ₹460 crore, which is lower than the ₹470 crore offer the bank was seeking in February.
• The sale of the loans can be submitted by the middle of June, as per a document on process advisor BoB Capital Markets.
• This is the third time Canara Bank is attempting to sell the loans after two previous failed attempts, the latest being in February this year, when it had set a ₹470-crore reserve price for the loans.

Key Takeaways

• Supreme Housing has been given a final chance to settle its debt of ₹567 crore with Canara Bank.
• The company must deposit ₹460 crore in a no-lien account with the bank by June 13, 2026.
• Failure to settle the debt will lead to the insolvency process being initiated.

FAQs

What is the current status of the insolvency proceedings against Supreme Housing?

The insolvency proceedings against Supreme Housing were initiated by Canara Bank in 2020 and secured admission of its petition in November 2022. However, the proceedings were later closed after both parties entered into a one-time settlement, which was not completed.

What is the reserve price for the sale of the loans?

The reserve price for the sale of the loans is ₹470 crore, as per the sale document to asset reconstruction companies.

What is the deadline for submitting bids for the loans?

The deadline for submitting bids for the loans is the middle of June, as per a document on process advisor BoB Capital Markets.

Conclusion

The NCLAT’s decision to give Supreme Housing a final chance to settle its debt with Canara Bank is a crucial development in the ongoing insolvency proceedings. The company must deposit ₹460 crore in a no-lien account with the bank by June 13, 2026, to avoid the insolvency process being initiated. This is a critical opportunity for the company’s promoters to settle their debt and avoid further financial consequences.

We will continue to monitor the situation and provide updates as more information becomes available.