The New Delhi Principal Bench of National Company Law Tribunal (NCLT) has held that where an application for withdrawal of CIRP under Section 12A of the IBC is supported by a duly submitted Form FA, accompanied by the required bank guarantee, placed before the CoC within the prescribed time, approved by not less than 90% voting share of the CoC, and otherwise complies with Regulation 30A, the Adjudicating Authority may permit withdrawal of the CIRP.
In the present case, since the “essential requirements” for a Section 12A application had been completely met and no stakeholder had objected, the NCLT allowed withdrawal of the corporate insolvency resolution process (CIRP) against Nobility Estates Pvt Ltd, developer of ATS Group’s luxury housing project ‘Le Grandiose’ in Noida, after lenders and the company’s erstwhile management reached a settlement agreement. The Tribunal also restored management to the Board, and released the Resolution Professional from CIRP-related obligations and liabilities.
The Division Bench comprising Bachu Venkat Balaram Das (Acting President) and Ravindra Chaturvedi (Technical Member) was satisfied that the essential requirements for filing an application under Section 12A had been completely met and that no objections had been received from any stakeholder opposing the application. On that basis, the Tribunal allowed the application, took on record the Form FA dated 13 March 2026 and the accompanying bank guarantee, concluded the CIRP of Nobility Estates Private Limited, and disposed of all pending applications connected with the insolvency proceedings.
The Tribunal recorded that the ex-management offered a settlement amount of Rs 108 crore against liabilities of Rs 775 crore owed to ASK Property Investment Advisors Pvt Ltd, while dues owed to certain other lenders are proposed to be settled through allocation of units in Phase II of the project. As part of the settlement terms, the erstwhile management has undertaken to obtain revalidation of the sanctioned map and renewal of the RERA licence within 120 days of approval of the withdrawal application. The company has also committed to complete Phase II construction within 48 months and provide periodic progress, sales and financial updates to stakeholders.
Accordingly, the Bench directed that the management and control of the Corporate Debtor stand restored to its Board of Directors and that the Resolution Professional be released from all obligations and liabilities arising from the CIRP, while clarifying that unpaid CIRP costs shall be paid as per law.
Briefly, an application was filed by the Resolution Professional of Nobility Estates Private Limited on behalf of ASK Trusteeship Services Private Limited, seeking withdrawal of the CIRP under Section 12A of the Insolvency and Bankruptcy Code, 2016 read with Section 60(5), Regulation 30A(1)(b) of the CIRP Regulations, and Rule 11 of the NCLT Rules. The withdrawal related to CP (IB) No. 390(PB)/2023, through which the Section 7 petition filed by ASK Property Investment Advisors Private Limited had earlier resulted in admission of insolvency proceedings against Nobility Estates Private Limited.
The Corporate Debtor was stated to be engaged in the development of the residential housing project “Le Grandiose” at Sector 150, Noida, Uttar Pradesh. The CIRP had been initiated by order dated 24 November 2023, and an Interim Resolution Professional, later acting as Resolution Professional, had taken steps under the Code including invitation of claims from creditors.
One of the suspended directors had challenged the admission order before the NCLAT, and that appeal was dismissed. Thereafter, the Resolution Professional constituted the Committee of Creditors after collating, verifying, and admitting claims. The CoC comprised ASK Trusteeship Services Private Limited, IDBI Trusteeship Services Limited, Piramal Capital & Housing Finance Limited, ATS Heights Private Limited, and creditors in class consisting of homebuyers. The Resolution Professional had also admitted claims from operational creditors, including employees, government dues, operational creditors other than workmen, employees and government dues, and other creditors, with government dues being reflected at a substantial amount.
During the CIRP, the Resolution Professional published Form G, identified nine prospective resolution applicants, and issued the Request for Resolution Plan and Information Memorandum. A resolution plan was received from Eka Life Limited on 26 July 2024. Later, on 10 October 2024, the ex-management also submitted a resolution proposal. The CoC, in its 18th and 19th meetings, considered the PRA plan but found it non-compliant and unacceptable, and thereafter examined the proposals submitted by the ex-management. In the 36th CoC meeting held on 16 January 2026, the CoC noted that the lenders and the ex-management had agreed upon broad settlement terms and were in the process of executing a formal settlement agreement.
On 26 January 2026 ASK informed the Resolution Professional that a formal settlement had been executed with the ex-management and that the financial creditors/lenders would be filing an application under Section 12A after completing the formalities for withdrawal. ASK thereafter shared Form FA dated 13 March 2026 together with relevant documents and the settlement agreement dated 24 January 2026. Under the settlement, the ex-management offered Rs. 108 crores against the liability of Rs. 775 crores owed to ASK Property Investment Advisors Private Limited. The debt of Rs. 220 crores owed to JM Financial was proposed to be settled by allocation of 37 units admeasuring approximately 1,00,400 square feet in Phase II of the project, and the debt of Piramal Finance, stated as Rs. 26.6 crore plus interest, was also proposed to be settled by allocation of units in Phase II.
The settlement terms further required the ex-management to obtain re-validation of the sanctioned map and renewal of the RERA licence within 120 days of allowance of the Section 12A application, complete Phase II construction within 48 months, provide monthly or quarterly progress, sales, and financial reports, and maintain insurance and pay statutory dues. The Resolution Professional convened a CoC meeting on 18 March 2026 to deliberate on the withdrawal proposal. There was also a meeting between homebuyers and the ex-management on 22 March 2026. Thereafter, an addendum dated 7 April 2026 was submitted based on demands raised by the homebuyers, and this addendum was shared with stakeholders and discussed in the 40th CoC meeting held on 10 April 2026. The CoC resolved to treat the addendum as part of the Section 12A withdrawal proposal and authorized the Resolution Professional to file the necessary application before the NCLT.
Appearances:
Sanjeev Sharma, Divya Joshi, Anushree Poddar, Advs, for Financial Creditor
M.P. Sahay, Yaman Verma, Chitra Chanda, Kartik Virmani, Advs., for Applicant
Abhishek Anand, Wamika Trehan, Varun Chopra, Advs., for RP
Himanshu Shekhar Tripathi, Adv., Sharad Agnihotri, Zeeshan Hashmi, Ankit Parashar, Mitali Yadav, Advs., for Respondent
Kartik Nayar, Krish Kalra, Divyansh Rai, Rishika Agarwal and Vaibhav Luthra, Advs., for suspended management
Himanshu Shekhar Tripathi, Adv., for Noida Authority
