Mumbai: The National Company Law Appellate Tribunal (NCLAT) has given the promoters of Supreme Housing and Hospitality a chance to settle their 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 company owes the bank a total of ₹567 crore.
"We are of the view that one opportunity, which will be the last opportunity, be given to the appellant, for discharge of its debt. Let the amount of ₹460 crore be deposited with the bank in a no-lien account on or before June 13, 2026," the NCLAT said in an order. "We make it clear that in the event the appellant fails to deposit the said amount, this interim order shall stand vacated and, thereafter, it shall be open for the resolution professional to proceed in the insolvency process..."
This is the third chance for Supreme Housing promoters to settle with creditors. Canara Bank had first initiated insolvency proceedings against the company 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.
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.
"The bank has also 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. This offer from the promoters is in line with what the bank is seeking in the sale document to asset reconstruction companies but cannot be called a one-time settlement, since the bank has not agreed to it yet," said a person familiar with the details. "Now it depends on whether the company actually deposits this amount."
A document on process advisor BoB Capital Markets said bids for the loans can be submitted by the middle of June.
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.
