The National Company Law Tribunal (NCLT), New Delhi, has allowed the withdrawal of Corporate Insolvency Resolution Proceedings (CIRP) against ATS Heights Private Limited, the developer of the ATS Knightsbridge project, in exercise of its powers under Section 12A of the Insolvency and Bankruptcy Code (IBC).
The court, through its order dated March 13, allowed an application seeking withdrawal of the insolvency proceedings and dismissed the company’s petition as withdrawn. The proceedings were originally commenced under Section 7 of the IBC by ASK Trusteeship Services Private Limited.
The insolvency application against ATS Heights Private Limited was accepted by NCLT on 22 April 2024, triggering the initiation of CIRP and appointment of an interim resolution specialist.
Subsequently, the admission order was challenged before the National Company Law Appellate Tribunal (NCLAT), which stayed further insolvency proceedings in May 2024. However, the appellate court allowed construction activities to continue under supervision to protect the interests of homebuyers.
Thereafter, a settlement was reached between the parties, pursuant to which an application under Section 12A of IBC was filed before the NCLT seeking withdrawal of the CIRP. By accepting the petition, the court officially closed the insolvency process.
With the NCLT allowing the withdrawal of the CIRP, insolvency proceedings in relation to the ATS Knightsbridge project have been terminated. The order effectively returns control of the project to the developer, enabling it to proceed with construction and delivery schedules in accordance with applicable regulatory conditions.
The project has reportedly reached an advanced stage, with structural works across the towers either completed or about to be completed. An initial delivery timeline of 18 to 24 months has been set, subject to environmental and regulatory factors.
The NCLT order sets out the legal framework under Section 12A of the IBC, which allows withdrawal of insolvency proceedings after admission, subject to approval, where the parties reach a settlement. The case also highlights the judicial balance between the rights of creditors and protecting the interests of homebuyers, particularly through NCLAT’s interim directions allowing construction to continue while pending proceedings. (ANI)
