# Canara Bank vs. M/s. Supreme Housing And Hospitality Private Limited

> NCLT judgment dated 2026-05-13. Citation: TCN-2026-NCLT-00508. Canara Bank, as the Financial Creditor (FC), filed a Company Petition (CP (IB) No. 1257 of…

- **Court:** NCLT
- **Order date:** 13 May 2026
- **Citation:** TCN-2026-NCLT-00508
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/canara-bank-vs-ms-supreme-housing-and-hospitality-private-limited-er91o

## Summary

### Background

Canara Bank, as the Financial Creditor (FC), filed a Company Petition (CP (IB) No. 1257 of 2025) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Supreme Housing And Hospitality Private Limited, the Corporate Debtor (CD), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed due to the CD's default on a Term Loan of Rs. 390 Crores, which led to the account being classified as a Non-Performing Asset (NPA) on 29.09.2017. The case involved multiple prior insolvency proceedings, challenges by suspended directors, and several One Time Settlement (OTS) proposals that the CD failed to honor. The CD contested the maintainability of the petition, citing a moratorium under Section 96 of the IBC due to

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## Facts

Canara Bank filed CP (IB) No. 1257 of 2025 on 13.11.2025 under Section 7 of the IBC, 2016, seeking initiation of CIRP against M/s. Supreme Housing And Hospitality Private Limited.

The amount claimed in default by Canara Bank is Rs. 5,67,43,40,067.80/- as on 31.10.2025, with a principal amount of Rs. 175,83,35,822.71/- and interest of Rs. 391,60,04,245.09/-.

The date of default is stated as 01.07.2017.

Canara Bank proposed M/s. KDRA Insolvency Professionals Private Limited as the Interim Resolution Professional (IRP).

Canara Bank sanctioned a Term Loan (Lease Rental Discounting) of Rs. 390.00 Crores to the Corporate Debtor on 12.01.2014, which was disbursed on 16.05.2014.

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## Issues and analysis

### Issue 1: Whether the interim moratorium under Section 96 of the IBC, triggered upon filing an application …

**Ratio:** The interim moratorium under Section 96 of the IBC is person-specific, applying to the

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**Reasoning:** A plain and purposive reading of Section 96 clarifies that the moratorium is triggered

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**Interpretation:** The Tribunal interpreted 'in relation to all the debts' in Section 96(1) to

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**Application:** Citing *Lalit Kumar Jain v. Union of India*, *IL & FS Financial Services

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Canara…
- **Respondents:** M/s. Supreme…
- **Other parties:** Bhawanishankar…; ICICI Bank…; +3 more
- **Advocates:** Nitish D…; Yash Dh…; +4 more

## Timeline

- **2014-01-12 — Term Loan San…**: Canara Bank sanctioned a Term Loan (LRD) of Rs. 390.00 Crores to M/s. Supreme Housing And…
- **2014-03-01 — Repayment Comm…**: Repayment of the Term Loan in 108 monthly structured instalments was to commence from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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