New Delhi, The National Company Law Tribunal has allowed withdrawal of insolvency proceedings against Nobility Estates, developer of the luxury housing project ‘Le Grandiose‘ in Noida, following a settlement between financial creditors and the erstwhile management.
The Delhi-based Principal bench allowed a section 12A application filed by the resolution professional of the realty firm, seeking withdrawal of the Corporate Insolvency Resolution Process against Nobility Estates.
The insolvency tribunal has directed the handover of the “management and control” of the Corporate Debtor (Nobility Estates) back to its board of directors, which was suspended after the initiation of CIRP against the realty firm.
A two-member NCLT bench observed that the proposal for withdrawal of CIRP under section 12A of the Insolvency & Bankruptcy Code was followed, as the proposal had been voted by over 90 per cent of the votes of the Committee of Creditors (CoC).
“We are satisfied that the essential requirements for filing an application under Section 12A have been completely met. Further, there are no objections that have been received by any stakeholder opposing the present application,” said a two-member NCLT bench comprising Acting President B V Balaram Das and Member Technical Ravindra Chaturvedi.
Section 12 A of IBC prescribes an exit route from insolvency. It mandates that the National Company Law Tribunal (NCLT) may allow the withdrawal of an insolvency case initiated by any financial or operational creditor under section 7,9 or section 10, based on an application made with the approval of 90 per cent voting share of the CoC.
Nobility Estates is developing a residential housing project known as “Le Grandiose” in Sector 150, Noida.
In the CoC of Nobility Estates, the stakeholders voted in favour of the settlement under Section 12A: Ask Trusteeship Services (45.05 per cent), Piramal Capital & Housing Finance (1.51 per cent), IDBI Trusteeship Services (5.67 per cent), and homebuyers (40.29 per cent).
CIRP was initiated against Nobility Estates by the Delhi bench of the NCLT on November 24, 2023, after it admitted the Section 7 petition filed by Ask Trusteeship Services and appointed an RP to run the affairs of the company, following suspension of the board.
The RP had collated the claims of financial and operational creditors and received an offer from the former management on October 10, 2024, for settlement of the case.
In the settlement, the ex-management had offered Rs 108 crore against the liability of Rs 775 crore owed to ASK Property Investment.
Further, the debt of Rs 220 crore owed to JM Financial was proposed to be settled by the allocation of 37 units, measuring a total area of approximately 1,00,400 sq ft in Phase II of the project being developed by the Corporate Debtor.
The debt of Piramal Finance (Rs 26.6 crore plus interest) was also proposed to be settled by allocation of units in Phase II.
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.
Moreover, an unconditional bank guarantee and adherence to timelines prescribed under the IBC framework. This was approved by the shareholders, following which a 12A application for withdrawal was filed before the NCLT.
“Having regard to the facts and circumstances of the case, we deem it appropriate to allow the application and the CIRP of Nobility Estates 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 13th March 2026,” said a 14-page order passed on May 5, 2026.
