NCLT Delhi Allows Withdrawal Of Nobility Estates CIRP, Restores Management Control To Board

The Delhi Bench of the National Company Law Tribunal (NCLT) on 5 May allowed withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Nobility Estates Private Limited under Section 12A of the Insolvency and Bankruptcy Code, 2016, after recording that creditors met the statutory approval threshold and parties reached a settlement.

Acting President Bachu Venkat Balaram Das and Technical Member Ravindra Chaturvedi allowed the withdrawal application, restored control of the company to its Board of Directors, and discharged the Resolution Professional from all duties. The Bench observed:

“Having regard to the facts and circumstances of the case, we deem it appropriate to allow the application and the Corporate Insolvency Resolution Process (CIRP) of Nobility Estates Private Limited stands concluded, by taking on record the Form FA dated 13 March 2026 issued by ASK Trusteeship Services Private Limited, along with the accompanying Bank Guarantee dated 13 March 2026.”

ASK Trusteeship Services Private Limited filed the original Section 7 petition through Resolution Professional Jitesh Goel. The Tribunal admitted the petition on 24 November 2023 and commenced CIRP against Nobility Estates Private Limited, developer of the “Le Grandiose” project in Noida.

The Tribunal appointed an Interim Resolution Professional, later confirmed as Resolution Professional. It constituted the Committee of Creditors on 20 February 2026. ASK held 45.05% voting share, IDBI Trusteeship Services held 5.67%, Piramal Capital held 1.51%, while homebuyers held 47.77%.

Operational creditors submitted claims including government dues exceeding Rs 160 crore, employee claims of about Rs 75 lakh, and other liabilities exceeding Rs 10 crore.

Eka Life Limited submitted one resolution plan during CIRP, but the Committee of Creditors rejected it for non-compliance. Thereafter, lenders and ex-management entered settlement discussions and finalised terms by January 2026. They executed a settlement agreement on 24 January 2026 and filed Form FA along with a bank guarantee dated 13 March 2026.

Under the settlement, ASK's admitted claim of Rs 775 crore was settled for Rs 108 crore. Rs 220 crore owed to JM Financial was proposed to be discharged through allocation of 37 residential units in Phase II of the project. Piramal Finance's dues of Rs 26.6 crore, along with interest, were also proposed to be settled through unit allocation.

An addendum dated 7 April 2026 addressed concerns raised by homebuyers. The Committee of Creditors approved the withdrawal proposal in its 40th meeting on 10 April 2026.

Electronic voting recorded 92.52% approval, exceeding the threshold under Section 12A. Homebuyers voted under Section 25A(3) and 25A(3A), with 636 voting in favour, 4 against, and 128 abstaining. The Supreme Court, in parallel proceedings, also encouraged settlement and noted it served stakeholder interests.

The Tribunal held that all requirements under Section 12A stood satisfied and no objections remained. It took Form FA and the bank guarantee on record and allowed the withdrawal. It concluded CIRP, restored control of the company to its Board, and released the Resolution Professional from duties.

Accordingly, the NCLT disposed of all pending CIRP-related applications.

For Applicants: Advocates Sanjeev Sharma, Divya Joshi and Anushree Poddar

For Respondents: Advocates Himanshu Shekhar Tripathi