NCLT admits Canara Bank's insolvency plea against Supreme Infra's SPV
This story was originally published at 18:14 IST on 26 August 2025
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal has admitted Canara Bank's plea to start insolvency proceedings against Supreme Best Value Kolhapur (Shiroli) Sangli Tollways Pvt. Ltd., a special purpose vehicle incorporated by Supreme Infrastructure India Ltd. for the purpose of executing a four-laning project from Shiroli to Sangli in Maharashtra. The petition was admitted after the debt-ridden company had defaulted on INR 3.47 billion payment to Canara Bank.
"...this tribunal is satisfied that a financial debt exists; there has been a default in repayment; the petition is within limitation, petition is complete as all the required documents have been attached along with the petition, all procedural requirements under Section 7 of the IBC (Insolvency and Bankruptcy Code), 2016 and Rule 4 of the Adjudicating Authority Rules are satisfied," said the tribunal. It declared a moratorium against the debt-ridden company under Section 14 of the 2016 Code.
The tribunal appointed Rajesh Jhunjhunwala as the interim resolution professional of the special purpose vehicle to carry out the functions as per the Insolvency and Bankruptcy Code, 2016. The interim resolution professional is expected to take full charge of the corporate debtor's assets and documents without any delay whatsoever, said the tribunal.
The case has its genesis in the special purpose vehicle approaching various banks and financial institutions for credit facilities of INR 2.28 billion in 2012. Thereafter, in 2013, Canara Bank sanctioned a term loan of INR 750 million for the project involving four-laning of the Shiroli-Sangli stretch of state highway 3 and 75 in Maharashtra. Thereafter, through novation deed, Canara Bank was inducted as a new lender in the 2012 loan agreement with the special purpose vehicle. Various loans later were also provided by Canara Bank to the special purpose vehicle from time to time.
In 2017, the special purpose vehicle defaulted on its payment to Canara Bank after which the former's account was classified as non-performing asset. After repeated defaults on payments by the debt-ridden company, Canara Bank moved the tribunal to start insolvency proceedings against the special purpose vehicle.
On Tuesday, the shares of Canara Bank ended 2.6% lower at INR 106.01 on the National Stock Exchange, the shares of Supreme Infrastructure India Ltd. ended 1.5% lower at INR 110.99. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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