NCLT Admits Insolvency Plea Against Supreme Housing & Hospitality
Mumbai, May 15: The NCLT has admitted Canara Bank's insolvency plea against Supreme Housing and Hospitality. The real estate firm faces dues exceeding ₹567 crore following multiple failed settlement attempts and prolonged litigation.
Default Details
The Mumbai bench of the tribunal initiated the corporate insolvency resolution process (CIRP) against the company under Section 7 of the IBC. Canara Bank claimed a default of ₹567.43 crore as of October 31, 2025, including principal outstanding of ₹175.83 crore and interest dues of ₹391.60 crore. The account had turned non-performing on September 29, 2017, after the borrower defaulted on repayment of a ₹390 crore lease rental discounting term loan sanctioned in 2014.
Failed Settlement Attempts
According to the order, Supreme Housing and Hospitality submitted a second OTS proposal to Canara Bank in June 2025 to settle dues for ₹460 crore. The lender accepted the proposal, under which ₹24.2 crore available in escrow was adjusted upfront, while the remaining ₹437 crore was to be paid within 90 days. However, the company allegedly failed to honour the timeline and did not pay the balance amount by October 28, 2025.
Previous Insolvency Proceedings
Canara Bank had first initiated insolvency proceedings against the company in 2020 and secured admission in November 2022. However, the proceedings were later closed after both parties entered into a settlement. Separately, ICICI Bank had also initiated CIRP against the company in 2024, which was subsequently withdrawn after a settlement under Section 12A of the IBC.
Tribunal's Ruling on Moratorium
The company opposed the insolvency petition, arguing that proceedings against its personal guarantors under Section 95 of the IBC triggered a moratorium, barring parallel insolvency proceedings. The tribunal held that liabilities of personal guarantors and the borrower arise from separate contracts, and the interim moratorium applicable to guarantors does not extend to insolvency proceedings against the corporate debtor.