NCLT Ahmedabad Admits Takshashila Heights Into CIRP After Supreme Court Order

The National Company Law Tribunal (NCLT) Ahmedabad Bench has recently admitted real estate developer Takshashila Heights Private Limited into insolvency after the Supreme Court dismissed the company's challenge to its financial creditor, leaving no discretion under the Insolvency and Bankruptcy Code.

A coram of Judicial Member Chitra Hankare and Technical Member Dr. V. G. Venkata Chalapathy allowed the Section 7 CIRP plea filed by Edelweiss Asset Reconstruction Company Limited.

It appointed Orion Resolution and Turnaround Private Limited as the interim resolution professional. Recording the effect of the Supreme Court ruling, the tribunal said, “In view of the orders passed by the Hon'ble Supreme Court, this application is admitted for initiating the process under CIRP.”

Takshashila Heights took a Rs 70 crore term loan in July 2018 from ECL Finance Limited. The money was used to build “Takshashila Elegna”, a residential-cum-commercial project in Ahmedabad.

The loan slipped into default in December 2021. It was later assigned to Edelweiss Asset Reconstruction Company in May 2022. Edelweiss recalled the loan on May 31, 2022, seeking repayment of Rs 53.03 crore. The parties discussed a one-time settlement. It did not work. Edelweiss then moved the NCLT.

The insolvency plea was first rejected by the NCLT in November 2024. The tribunal accepted the developer's claim that the project was substantially complete and financially viable. It said insolvency would harm homebuyers. It also said the Insolvency and Bankruptcy Code should not be used only as a recovery tool. That order was set aside by the National Company Law Appellate Tribunal in July 2025. Takshashila Heights then moved the Supreme Court.

The Supreme Court dismissed the appeal on January 15, 2026. It held that once debt and default are established, admission under Section 7 is mandatory. It said the discretion discussed in Vidarbha Industries applies only to exceptional cases. Relying on this ruling, the NCLT admitted the insolvency plea. It also declared a moratorium under Section 14 of the Code.

The tribunal directed Edelweiss to deposit Rs 2 lakh towards initial insolvency expenses. It asked the interim resolution professional to issue a public announcement inviting claims within three days of receiving the order. The matter has been listed for further consideration on March 9, 2026.

For Applicant: Senior Advocate Rashesh Sanjanwala with Advocates Dhairya Maniyar and Hem Buch

For Respondent: CA Kiran Shah