The National Company Law Appellate Tribunal (NCLAT) has granted Mumbai-based real estate developer Supreme Housing and Hospitality one final opportunity to settle its outstanding debt with Canara Bank by depositing ₹460 crore into a no-lien account by June 13, 2026. The tribunal made it clear that this would be the last chance for the company to resolve the matter before insolvency proceedings continue.
Supreme Housing currently owes approximately ₹567 crore to Canara Bank. In its order, the NCLAT stated that the company must deposit the agreed amount within the stipulated timeline. If the payment is not made, the interim protection granted by the tribunal will automatically cease, allowing the resolution professional to proceed with the ongoing insolvency process under the Insolvency and Bankruptcy Code (IBC).
The latest order marks the third opportunity given to the company’s promoters to settle their liabilities with creditors. The financial dispute dates back to 2020 when Canara Bank first initiated insolvency proceedings against Supreme Housing. The lender succeeded in getting its petition admitted in November 2022. However, the insolvency process was later withdrawn after both parties agreed to a one-time settlement arrangement. The settlement, however, was never fully implemented, leading to further complications.
In 2025, Supreme Housing submitted a second one-time settlement proposal to Canara Bank, offering to settle the dues for ₹460 crore. Despite the proposal being considered, the company failed to fulfil its commitment within the agreed timeline. Consequently, Canara Bank initiated a fresh insolvency process, which was admitted earlier this year.
Industry sources indicate that the ₹460 crore figure aligns closely with the bank’s efforts to monetize the stressed asset. Canara Bank has reportedly put its entire loan exposure to Supreme Housing up for sale on an all-cash basis, with a reserve value of ₹460 crore. This amount is lower than the ₹470 crore reserve price sought during a previous loan sale attempt in February 2026.
According to market participants familiar with the matter, the promoters’ latest proposal effectively matches the bank’s expectations from potential buyers, including asset reconstruction companies (ARCs). However, since the bank has not formally accepted the proposal as a one-time settlement, the transaction remains contingent on the actual deposit of funds.
The sale process is being managed by BoB Capital Markets, which has invited bids for the stressed loan exposure. Reports suggest that interested bidders are expected to submit their offers by mid-June. This is reportedly the third attempt by Canara Bank to sell the debt after two previous efforts failed to attract successful buyers.
The case highlights the growing challenges faced by developers dealing with financial stress amid evolving market conditions and stricter insolvency regulations. For Supreme Housing, the NCLAT’s directive presents a critical opportunity to avoid a full-fledged insolvency resolution process. The coming weeks will determine whether the company can arrange the required funds and resolve its long-standing dispute with Canara Bank, or whether the insolvency proceedings will move forward as scheduled.
Image- nclat.nic.in
