Supreme Infrastructure Nears Debt Settlement After NCLT Deadline Extension
Mumbai-based infrastructure firm secures final payment framework for its ₹2,200 crore legacy debt.
1NCLT Facilitates Debt Resolution
The National Company Law Tribunal Mumbai Bench issued a pivotal order on October 28, 2026, regarding Supreme Infrastructure India Limited. This directive supports the company's efforts to resolve legacy debt totaling ₹2,200.36 crore. The resolution process utilizes a court-approved Scheme of Compromise rather than standard insolvency proceedings to manage obligations.
2Strategic Settlement Framework
The restructuring involves 14 financial creditors, with 11 having already received their settlement amounts and released their charges. The latest NCLT order specifically addresses the remaining obligations owed to State Bank of India, Punjab National Bank, and Union Bank of India, providing a clear timeline for completing all outstanding payment requirements.
3Operationalizing Escrow Mechanisms
Under the tribunal's direction, the lead bank must operationalize an escrow arrangement within two working days. This mechanism, involving SBICAP Trustee Company Limited, is designed to facilitate the final payment formalities. The framework also includes specific provisions for the release of securities and the issuance of necessary discharge certificates for the company.
4Strict Compliance Deadlines
The NCLT extended the deadline for completing all settlement payments to October 31, 2026. The agreed framework includes a reimbursement provision of ₹5 crore and explicitly outlines consequences for non-compliance with the prescribed timeline. These conditions are governed by the tribunal's order and mutually agreed minutes filed by the involved parties.
5Creditor Support and History
The debt resolution plan secured significant backing, receiving 93.62% of votes at a creditors' meeting held on May 13, 2024. The NCLT sanctioned the scheme on March 28, 2025, allowing the firm to pursue this consensual path. Previously, the company successfully paid ₹687.73 crore to lenders as part of the ongoing restructuring exercise.
6Management Perspective on Stability
CFO Siddharth Jain described the restructuring as a defining moment for the company's financial health. By resolving legacy debt through a consensual framework, the firm aims to strengthen its balance sheet. Management is now focused on improving operational efficiencies to capitalize on emerging opportunities within India’s diverse infrastructure and power project sectors.
7Advisory and Legal Oversight
AU Corporate Advisory Legal Services, led by founder Akshat Khetan, served as the legal and strategic adviser to the promoters throughout the restructuring process. Their involvement ensured the alignment of the settlement terms with the Companies Act, 2013, specifically sections 230 and 231, which govern the approved Scheme of Compromise and Arrangement.
8Future Business Continuity
Successfully concluding this settlement is expected to preserve enterprise value and ensure business continuity for the Mumbai-based firm. As the company moves past these legacy obligations, it positions itself for long-term revival. The focus remains on executing ongoing projects across roads, bridges, and water sectors while maintaining a more stable financial foundation.