Highest housing leaves insolvency after reaching settlement with top lenders | Company Business News

An Insolvency Court in Mumbai allowed the highest housing and hospitality PVT Ltd to leave the insolvency proceedings on Wednesday after reaching a settlement with the lender ICICI Bank. A detailed order on the matter is waiting. Canara Bank and Icici Bank took the highest housing to the Insolvency Court after the broker had no more than £ 800 crore. After hearing the case extensively, a bank led by Justices Ashish Kalia and Sanjeev Dutta reserved the order on July 1. The order was in response to a petition submitted by the Resolution Professional Prashant Jain on March 21, with the withdrawal of the insolvency application against the real estate company. The withdrawal application was submitted in terms of section 12A of the Insolvency and Bankruptcy Code, 2016, after ICICI Bank reached a settlement with the company. Article 12A allows the withdrawal of Cirp proceedings, provided it has the approval of 90% of the COC (COC) Committee, and the NCLT is the assurance that the interests of all stakeholders are protected. This makes Supreme Housing one of very few companies that have withdrawn insolvency proceedings, with the process becoming more and more complicated. Article 12A requires a majority vote of 90%, which in many cases, according to legal experts, is difficult to achieve. They added that even if some creditors reached an agreement with the company, other creditors may initiate bankruptcy proceedings under the IBC, which could possibly complicate or delay the company’s exit of insolvency. How it all started, the financial problems of Supreme Housing began with a £ 390 crore loan approved in 2014, which subsequently became a non-performing asset. In November 2022, the company was allowed by the NCLT in insolvency to the petition of Canara Bank under Article 7. However, the proceedings were withdrawn after the parties agreed to a one -time settlement, with the option to revive the insolvency in case of default. Despite several highest housing proposals, most offers of a one-tie settlement were not supported by credible financing obligations, which led to continuing defaults and a reinitiation of insolvency proceedings by Canara Bank. While the proceedings of Canara Bank were pending, ICICI Bank also moved the NCLT in January 2024 in terms of section 7 of the IBC and asked to ask for its claim against Supreme Housing on the same £ 390 loan. The Mumbai Bank of the NCLT acknowledged the plea explanation, which asked the suspended board of the company to approach the National Companies Law Repairal (NCLAT). The promoters argued that they were in settlement negotiations with ICICI Bank, which led the NCLAT to initially provide a temporary stay. However, the Appeal Tribunal later evacuated the accommodation, referring to a lack of binding settlement conditions and continued non-compliance. Insolvency proceedings revived with both ICICI Bank and Canara Bank striving under IBC, the insolvency proceedings were revived in February 2025. Canara Bank has filed claims more than £ 580 with the resolution professional. Highest housing then reached a settlement with ICICI Bank and filed a section 12A application before the NCLT. However, Canara Bank objected to the withdrawal and filed an intervention application, saying that it remained a substantial creditor with unresolved claims that were more than £ 580. In June, Supreme Housing Canara Bank approached with a fresh settlement proposal, backed by Authum Investments and Infrastructure Limited. The offer included a complete and final settlement of £ 460 crore, with £ 23 crore payable and the remaining to be cleared from the insolvency within 90 days of retirement of the highest housing. On June 16, Canara Bank approved the proposal under specific conditions and cleared the way for a united settlement with all major lenders. Considering the settlement with both ICICI Bank and Canara Bank, and considering the consent of the creditors concerned, the NCLT approved the Section 12A application of Supreme Housing. Niyati Merchant, co -partner at MDP Legal represented Canara Bank, while Rohan Agarwal and Sujit Lahoti appeared for Supreme Housing.