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Informist, Wednesday, May 13, 2026

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Wednesday admitted a petition by Canara Bank to start insolvency proceedings against Supreme Housing and Hospitality Pvt. Ltd. for unpaid dues of INR 5.67 billion. The tribunal appointed KDRA Insolvency Professionals Pvt. Ltd. as the interim resolution professional of Supreme Housing to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.

 

The tribunal rejected Supreme Housing's argument that Canara Bank had already filed insolvency petitions against the debt-ridden company's personal guarantors and an interim moratorium was in place for the entire debt payable to the bank. The tribunal said the interim moratorium was person-specific and not debt-centric and does not apply to the benefit of a corporate debtor. The pendency of proceedings against personal guarantors does not eclipse or suspend the independent statutory remedies available against the corporate debtor, it said.

 

The liability of a guarantor is co-extensive with that of the principal borrower, the tribunal said. However, that does not imply exclusivity of remedies, it added, and a creditor is entitled in law to proceed simultaneously or independently against the principal borrower as well as the guarantor. The initiation of proceedings against one does not operate as a legal bar against the other, it said.

 

In 2014, Canara Bank had sanctioned a term loan of INR 3.90 billion to Supreme Housing. The loan was repayable in 108 monthly structured instalments. On the company's failure to pay the dues to the bank, Supreme Housing's account was classified as a non-performing asset in 2017. Consequently, the bank moved the tribunal to start insolvency proceedings against Supreme Housing, which was initially admitted in 2022.

 

However, in an appeal, the National Company Law Appellate Tribunal disposed of the case, noting a one-time settlement between Canara Bank and Supreme Housing. The appellate tribunal asked Canara Bank to revive the insolvency petition if Supreme Housing defaulted on the settlement. After some back and forth and a few more settlement agreements, Canara Bank again moved the tribunal to start insolvency proceedings against Supreme Housing after the latter defaulted on payments.

 

Wednesday, shares of Canara Bank ended 0.6% lower from Tuesday at INR 129.26 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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