Supreme Infrastructure Debt Plan Gets October 31 Deadline

NCLT sets a fresh payment deadline

Supreme Infrastructure India Limited has reached a critical stage in resolving its legacy debt obligations. The National Company Law Tribunal, Mumbai Bench, Court-IV, passed an order on October 28, 2026, concerning the implementation of the company’s settlement plan. The order extended the deadline for completing payments to October 31, 2026. The settlement relates to ₹2,200.36 crore of legacy principal debt owed to 14 financial creditors. The company is implementing a Scheme of Compromise and Arrangement approved by the NCLT. The latest direction gives the remaining process a defined closing date. It also places attention on the actions required from the lead bank and the remaining lenders. The development is material for shareholders because the scheme has been central to the company’s efforts to settle lender dues.

Escrow mechanism must be operationalised

The NCLT directed the lead bank to operationalise the escrow arrangement within two working days. The escrow mechanism is a necessary part of completing the pending settlement process. Supreme Infrastructure had previously stated that it had demonstrated the availability of funds to discharge its obligations under the approved scheme. It had asked the remaining lenders to operationalise the escrow mechanism and take consequential actions required for settlement. The tribunal’s direction formally addresses this pending operational step. Completion of the escrow process would enable the balance payments contemplated under the scheme. The order follows earlier extensions granted during the implementation process. It does not by itself confirm that the final settlement has been completed. The October 31 deadline is therefore the immediate date to track.

Eleven creditors had already received payments

The company had completed payments under the sanctioned scheme for 11 of the 14 financial creditors. It also obtained final No Dues Certificates and completed charge-release formalities for those lenders. This indicates that a substantial part of the court-approved arrangement had already been implemented. In a July 2025 disclosure, the company said that more than 90% of payouts under the scheme had been completed. The remaining process has involved three public-sector banks. These are State Bank of India, Punjab National Bank and Union Bank of India. Partial payments had been made to all three lenders. Their pending actions and settlement formalities have remained important to the scheme’s final closure.

Outstanding principal with three lenders

The three remaining lenders accounted for the principal-default amounts identified in the company’s disclosures. State Bank of India had a stated principal default of ₹176.24 crore. Punjab National Bank had a stated principal default of ₹386.17 crore. Union Bank of India had a stated principal default of ₹659.15 crore. These figures were originally disclosed in lakhs and are shown here in crore for consistency. The company had sought an extension of time before the tribunal for completing the process with these lenders. It had also created a ₹120 crore fixed deposit with State Bank of India, earmarked for balance settlement dues. The disclosed arrangements show that the remaining work involved both funding and lender-side implementation actions.

Key settlement figures

Earlier extensions reflected pending approvals

The NCLT had earlier acknowledged, in its May 11, 2026 order, that Supreme Infrastructure had paid more than ₹627 crore towards settlement of lender dues. Following that order, the company said that the balance funds were available and called on the remaining lenders to complete the escrow process. However, the lenders sought clarification and internal guidance regarding ratification of the May 11 order and related matters. These issues required consideration by their internal committees and approval authorities. A meeting was then convened under the chairmanship of a Court-Appointed Commissioner. The meeting reviewed the scheme’s implementation status, substantial payments, fund availability and the actions still required from the company and lenders. The commissioner recommended additional time. The remaining three lenders subsequently agreed in principle to a 60-day extension in June 2026.

NCLT-approved scheme dates back to 2025

The Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013, was approved by the NCLT on March 28, 2025. The arrangement involved Supreme Infrastructure and its financial creditors. The company later reported an exceptional gain arising from reversal of interest and principal under the sanctioned scheme. That accounting outcome was linked to the tribunal-approved compromise and arrangement. The current process concerns implementation of the settlement terms rather than approval of a new restructuring plan. Its progress has been disclosed through stock exchange updates under SEBI Listing Obligations and Disclosure Requirements regulations. The company has said it will keep stock exchanges informed of further material developments. This disclosure obligation remains relevant until the pending settlement actions are concluded.

AU Corporate Advisory is named in the process

The report on the latest development identifies Akshat Khetan-led AU Corporate Advisory as playing a key role in the resolution process. The provided information does not specify the firm’s exact mandate, transaction structure or advisory responsibilities. Its involvement comes as the company seeks completion of a court-supervised settlement involving multiple financial creditors. The central legal forum remains the NCLT, Mumbai Bench, Court-IV. The lead bank’s escrow-related action is also specifically covered by the tribunal’s October 28 direction. The settlement process has required coordination among the company, lenders, the Court-Appointed Commissioner and the tribunal. Such coordination has been necessary because payments, internal lender approvals and charge-release formalities are linked steps. The latest order focuses on moving the remaining actions toward completion within the extended period.

What the deadline means for investors

For investors, the material issue is whether the payment and escrow steps are completed by October 31, 2026. The company has already reported substantial implementation of the scheme, including payments to 11 creditors and charge-release formalities. But final closure depends on completing obligations involving the remaining three lenders. The NCLT order reduces uncertainty around the immediate timetable by setting a specific deadline and directing the lead bank to operationalise escrow. It does not remove the need for lender-side and procedural completion. Separately, Supreme Infrastructure received approval from the Registrar of Companies, Mumbai, to extend its FY26 annual general meeting deadline to November 15, 2026. The AGM extension was sought on regulatory compliance grounds. The next material update is likely to concern the completion status of the lender settlement process or any further tribunal-related development.

Conclusion

Supreme Infrastructure’s debt resolution has moved into its final stated window under the NCLT’s October 28 order. The company has until October 31, 2026 to complete payments under the scheme, while the lead bank must operationalise the escrow arrangement within two working days. Payments for 11 of 14 creditors have already been completed, leaving settlement actions involving SBI, PNB and Union Bank of India. The company’s future disclosures to stock exchanges will clarify whether the remaining obligations and formalities have been concluded within the tribunal’s timeline.