Supreme Infrastructure Nears ₹2,200-Crore Debt Resolution; NCLT Sets Oct 31 Deadline
NCLT sets October 31 deadline for Supreme Infrastructure to resolve ₹2,200 crore debt with lenders including SBI and PNB.
Supreme Infrastructure India Limited (SIIL) is on the verge of closing a massive financial chapter as it nears the resolution of ₹2,200.36 crore in legacy principal debt. In a decisive move, the National Company Law Tribunal (NCLT), Mumbai Bench, has set a strict deadline of October 31, 2026, for the completion of the settlement process.
Unlike traditional insolvency proceedings, this restructuring was achieved through a court-sanctioned Scheme of Compromise and Arrangement under Sections 230 and 231 of the Companies Act, 2013. This strategic path allowed the company to settle its dues while ensuring business continuity and preserving its overall enterprise value.
The Final Push: NCLT Directives and Deadlines
The latest development follows the filing of mutually agreed minutes on October 26, 2026, between Supreme Infrastructure and its three remaining lenders: State Bank of India (SBI), Punjab National Bank (PNB), and Union Bank of India.
To ensure the settlement is executed without further delay, the NCLT has issued the following mandates:
- Payment Deadline: All outstanding settlement obligations must be completed by October 31, 2026.
- Escrow Setup: The lead bank has been directed to operationalise the escrow arrangement within two working days.
- Administrative Actions: The order covers the appropriation of funds, the release of securities and charges, and the issuance of official discharge certificates.
- Financial Provisions: The arrangement includes a specific provision regarding the reimbursement of ₹5 crore, with clear consequences outlined for any non-compliance with the deadline.
A Journey of Consensual Settlement
The road to this resolution was paved with significant creditor support. During a meeting held on May 13, 2024, the restructuring scheme received a resounding 93.62 per cent of the votes cast by financial creditors. This overwhelming approval led to the NCLT Mumbai sanctioning the scheme on March 28, 2025.
The debt in question—₹2,200.36 crore as of June 30, 2022—refers to the principal amount. A key highlight of the sanctioned scheme is that accumulated interest, penal interest, and other associated charges are subject to waiver once the successful completion of the plan is achieved.
Progress So Far
The company has already made substantial headway in clearing its dues. Reports indicate that ₹687.73 crore has already been paid to lenders. Out of the 14 financial creditors involved, 11 have already received their settlements and released their charges. The remaining payments are currently being managed through an escrow mechanism involving SBICAP Trustee Company Limited.
The Strategic Architecture Behind the Deal
A pivotal role in navigating this complex financial maze was played by AU Corporate Advisory & Legal Services, led by its founder, Akshat Khetan. Acting as the legal and strategic adviser to the promoters of Supreme Infrastructure, the firm was responsible for:
- Conceptualising the restructuring framework.
- Leading negotiations with the lender consortium.
- Coordinating financial and legal strategies.
- Assisting in the implementation of the NCLT-sanctioned scheme.
The legal proceedings before the NCLT were handled by Sujit Lahoti & Associates, with Advocate Rohan Agrawal representing the company.
"This outcome is the result of patient, principled engagement with every lender in the consortium. Our brief from the promoters was clear: honour every rupee committed under the Scheme, keep the company out of insolvency and get to closure. Today’s order, passed on terms every lender has signed, does exactly that," stated Akshat Khetan.