NCLT Allows Withdrawal of Insolvency Proceedings Against Nobility Estates
New Delhi, May 12: The NCLT has allowed withdrawal of insolvency proceedings against Nobility Estates, developer of ATS Group's Le Grandiose project in Noida, after lenders and management reached a settlement. The tribunal noted 92.52% approval from the committee of creditors.
Settlement Approval
The order was passed by the NCLT Principal Bench on May 5, 2026. The committee of creditors (CoC) approved the withdrawal proposal with 92.52 per cent voting share, exceeding the statutory requirement of 90 per cent under the IBC. A total of 636 homebuyers voted in favour, four voted against and 128 did not vote. The tribunal noted that no stakeholder opposed the withdrawal application.
Financial Terms of Settlement
As part of the settlement, the erstwhile management offered ₹108 crore against liabilities of ₹775 crore owed to ASK Property Investment Advisors. Debt of ₹220 crore owed to JM Financial is proposed to be settled through allocation of 37 units admeasuring about 1,00,400 sq ft in Phase II of the project. Piramal Finance's dues of ₹26.6 crore plus interest are also proposed to be settled through unit allocation.
Conditions and Timeline
The settlement terms require the erstwhile management to obtain revalidation of the sanctioned map and renew the RERA licence within 120 days of approval. It has also undertaken to complete Phase II construction within 48 months, provide monthly and quarterly progress reports, maintain insurance and pay statutory dues. An addendum to the settlement agreement was submitted on April 7, 2026, after demands raised by homebuyers.
Restoration of Management
The NCLT directed that management and control of Nobility Estates be restored to its board of directors and released the resolution professional from obligations arising from the CIRP. The insolvency proceedings were initiated on November 24, 2023, on a petition filed by ASK Property Investment Advisors. The tribunal also recorded that appeals related to the matter were pending before the Supreme Court, which had earlier observed that settlement would be in the interest of all parties.