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

> NCLT judgment dated 2026-05-13. Citation: TCN-2026-NCLT-00507. Canara Bank (Financial Creditor) filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 13 May 2026
- **Citation:** TCN-2026-NCLT-00507
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/canara-bank-vs-ms-supreme-housing-and-hospitality-private-limited-svn42

## Summary

### Background

Canara Bank (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Supreme Housing And Hospitality Private Limited (Corporate Debtor) for defaulting on a Term Loan of Rs. 390 Crores. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 29.09.2017. The case involved multiple prior insolvency proceedings, challenges by suspended directors, and two One Time Settlement (OTS) proposals, both of which the Corporate Debtor allegedly defaulted on. The Corporate Debtor argued that the present petition was barred by a moratorium under Section 96 of the IBC, triggered by personal guarantee petitions against its directors, and also alleged procedural defects in the Financial Creditor's

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## Facts

Canara Bank (Financial Creditor) filed C.P. (IB) No. 1257 of 2025 on 13.11.2025 under Section 7 of the IBC.

The application seeks initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Supreme Housing And Hospitality Private Limited (Corporate Debtor).

The amount claimed in default 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.

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

The Corporate Debtor had approached the Financial Creditor for a Term Loan on 12.01.2014, which was sanctioned for Rs. 390.00 Crores on 29.03.2014 and 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 by insolvency proceedings …

**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 indicates that the moratorium is triggered

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**Interpretation:** The expression 'in relation to all the debts' in Section 96, and 'in relation

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**Application:** The Corporate Debtor's contention that the Section 96 moratorium bars the

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Canara…
- **Respondents:** M/s. Supreme…
- **Other parties:** Committee of…; Bhawanishankar…; +8 more
- **Advocates:** Nitish D…; Yash Dh…; +4 more

## Timeline

- **2014-01-12 — Term Loan App…**: Corporate Debtor approached Financial…
- **2014-03-29 — Term Loan San…**: Financial Creditor sanctioned Term…

## 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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