Project Segregation In CHD-Vann Real Estate Insolvency Justifies 525-Day CIRP Exclusion: NCLAT

Holding that in a real estate insolvency involving multiple projects, the period till segregation of a project from the CIRP was liable to be excluded, the National Company Law Appellate Tribunal (NCLAT) has allowed exclusion of 525 days in the CHD-Vann matter and set aside the NCLT's rejection of the plea.

A Bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed that the insolvency pertained to a real estate company with several projects, and different orders had been passed from time to time segregating projects from the CIRP. Since the last such segregation concerning CHD-Vann was allowed only on November 21, 2025, “the said period is required to be excluded,” the tribunal held.

The appeal was filed by Hans Raj Bhogra, the authorised representative of the class of unsecured financial creditors holding 72% voting share, challenging the NCLT's order rejecting an application seeking exclusion of 525 days from June 12, 2024 to November 21, 2025.

The Appellate Tribunal held that the Adjudicating Authority had “committed error” in rejecting the exclusion application and found that sufficient cause had been made out to allow the plea.

The NCLT had rejected the application, noting that when the matter was taken up on November 21, 2025, counsel were heard and the order was pronounced in open court. The NCLAT, however, pointed out that the case concerned a real estate insolvency involving multiple projects, each dealt with through separate segregation orders, and since the CHD-Vann project was segregated only on November 21, 2025, the period leading up to it deserved to be excluded.