NCLAT Offers Supreme Housing Last Opportunity to Settle Canara Bank Dues

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

NCLAT Offers Supreme Housing Last Opportunity to Settle Canara Bank Dues

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

The company had previously submitted a one-time settlement proposal to Canara Bank in 2022, but failed to honour its commitment. The bank then initiated a second insolvency process, which was admitted in May this year.

Previous Settlement Attempts

Canara Bank had first 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.

Market Impact and Details

• The 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.
• Bids for 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 owes Canara Bank a total of ₹567 crore.
• The NCLAT has given the company its final chance to settle its outstanding dues.
• The bank has put up its entire loan exposure for sale on an all-cash basis for ₹460 crore.

FAQs

What is the total amount owed by Supreme Housing to Canara Bank?

Supreme Housing owes Canara Bank a total of ₹567 crore.

What is the deadline for Supreme Housing to deposit the amount with the bank?

The NCLAT has directed Supreme Housing to deposit ₹460 crore with the bank in a no-lien account by June 13, 2026.

What happens if Supreme Housing fails to deposit the amount?

In the event the company fails to deposit the said amount, the interim order shall stand vacated and it shall be open for the resolution professional to proceed in the insolvency process.

Conclusion

The NCLAT’s order has given Supreme Housing its final chance to settle its outstanding dues with Canara Bank. If the company fails to deposit the amount by June 13, 2026, the bank will proceed with the insolvency process. Investors and creditors are advised to closely monitor the situation and take necessary steps to protect their interests.