Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 07 August 2026
Case Overview
This appeal (Company Appeal (AT)(INS) No.905/2026) arises from Corporate Insolvency Resolution Process (CIRP) proceedings against Supreme Housing and Hospitality Pvt Ltd. The appellant, Bhawanishankar Sharma, is a member of the suspended Board of Directors of the Corporate Debtor. The respondents are Canara Bank (Financial Creditor) and another party. The matter concerns a settlement proposal under Section 12A of the Insolvency and Bankruptcy Code (IBC).
During the hearing, the appellant's counsel referenced minutes from the 3rd Committee of Creditors (CoC) meeting held on July 31, 2026. The Corporate Debtor expressed inclination to settle the matter and offered a total sum of Rs. 517 crores under Section 12A of the IBC. From this total offer, Rs. 475.77 crores was specifically offered to Canara Bank. The bank's Competent Authority, after due consideration, accepted this offer of Rs. 475.77 crores, payable according to the terms set out in the proposal. In the same CoC meeting, representatives of the State Bank of India sought additional time to decide on the settlement issue.
The appellant submitted that they have already deposited an amount of Rs. 247 crores with the bank and would deposit additional funds if their settlement proposal is finalized.
Final Outcome
The NCLAT bench, comprising Officiating Chairperson Justice Yogesh Khanna and Technical Members Mr. Barun Mitra and Mr. Ajai Das Mehrotra, granted the appellant's request for additional time to finalize the settlement proposal. The matter has been adjourned and is now listed for hearing on September 1, 2026.
Topics: Insolvency Settlement, Banking Debt, NCLAT Proceeding