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The National Company Law Tribunal has approved the withdrawal of insolvency proceedings against Nobility Estates, the developer of ATS Group’s Le Grandiose project in Noida, after lenders and the company’s earlier management reached a settlement. The proposal received more than 92% approval from the committee of creditors, including strong backing from homebuyers. The settlement includes repayment commitments, allocation of residential units to lenders, and timelines for regulatory approvals and project completion. The tribunal has restored management control to the company’s board, bringing temporary relief to homebuyers and lenders involved in the stalled project.
The National Company Law Tribunal (NCLT) has allowed the withdrawal of the corporate insolvency resolution process (CIRP) against Nobility Estates, the company developing ATS Group’s Le Grandiose housing project in Sector 150, Noida, after a settlement was reached between lenders and the earlier management of the company. Advertisement
The principal bench of the tribunal approved the withdrawal after the settlement proposal secured 92.52% voting support from the committee of creditors, crossing the minimum 90% threshold required under the Insolvency and Bankruptcy Code (IBC). Homebuyers formed a major part of the voting process, with 636 buyers supporting the proposal while only four voted against it.
The insolvency proceedings against Nobility Estates had started in late 2023 following a petition filed by ASK Property Investment Advisors. The project, located in Noida’s Sector 150, is part of a micro-market that has witnessed several delayed residential developments and financial stress among developers over the past few years. Sector 150 has remained a key residential destination because of its low-density planning and premium housing projects, but many projects in the region have faced execution and funding challenges.
According to the tribunal order, ASK Trusteeship Services held a 45.05% voting share in the committee of creditors, while homebuyers collectively held 47.77%. IDBI Trusteeship Services had a 5.67% share and Piramal Capital & Housing Finance held 1.51%. The tribunal observed that none of the stakeholders opposed the withdrawal application.
As part of the settlement plan, the earlier management proposed payment of INR 108 crore against liabilities of nearly INR 775 crore owed to ASK Property Investment Advisors. The settlement also includes resolution of dues payable to other lenders through allocation of project inventory.
JM Financial’s dues of around INR 220 crore are proposed to be settled through the allocation of 37 residential units spread across nearly 1,00,400 sq ft in Phase II of the Le Grandiose project. Piramal Finance is also expected to receive units in the same phase against dues of nearly INR 26.6 crore along with applicable interest.
The tribunal order stated that the developer will now be required to meet several commitments linked to project execution and compliance. Nobility Estates has undertaken to secure revalidation of the sanctioned building plan and renewal of the project’s RERA registration within 120 days of approval of the settlement plan.
The company has also committed to completing Phase II construction within 48 months. In addition, it will have to submit monthly and quarterly progress reports covering construction updates, sales performance and financial details. The management has also agreed to maintain insurance coverage for the project and clear all statutory dues during the execution period.
The NCLT also considered an addendum submitted earlier this year after concerns raised by homebuyers regarding project delivery and timelines. The tribunal recorded the addendum as part of the final settlement proposal. It also accepted Form FA submitted by ASK Trusteeship Services along with an unconditional and irrevocable bank guarantee required for withdrawal of insolvency proceedings.
Following the withdrawal of the CIRP, the tribunal restored control of the company to its board of directors and discharged the resolution professional from duties related to the insolvency process. All pending applications connected with the matter were also disposed of by the bench.
The order further noted that related appeals remain pending before the Supreme Court, which had earlier observed that a settlement between stakeholders would be in the interest of all parties, particularly homebuyers awaiting completion of the project.
The development comes amid a broader trend in the real estate sector where stressed housing projects are increasingly seeing settlements outside lengthy insolvency proceedings. In recent months, several developers facing insolvency cases have either secured relief through settlements or witnessed proceedings being set aside after agreements between lenders, developers and homebuyers.
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