The National Company Law Tribunal (NCLT) has permitted the withdrawal of the corporate insolvency resolution process (CIRP) against Nobility Estates Private Limited, the developer of the Le Grandiose residential project in Noida's Sector 150. This decision follows a settlement agreement reached between the lenders and the company's former management. The tribunal has also reinstated the management of the real estate firm to its board of directors.
NCLT Order Details
The principal bench of the NCLT, led by acting president Bachu Venkat Balram Das and technical member Ravindra Chaturvedi, approved the withdrawal application on May 5. In its order, the tribunal stated, "We deem it appropriate to allow the application and the CIRP of Nobility Estates Private Limited stands concluded. All pending applications in relation to the CIRP of the corporate debtor (Nobility Estates) are disposed of." The resolution professional has been released from all obligations and liabilities arising from the CIRP.
Background of the Project
Nobility Estates was developing Le Grandiose, a residential project spread over 53,908 square meters in Sector 150, Noida. Launched in 2016 with a proposed completion date of 2023, the project comprised nearly 1,000 flats of 3 and 4 BHK configurations. However, construction stalled midway, leaving homebuyers in limbo.
Insolvency Proceedings Initiated by Financial Creditor
The insolvency case was filed by ASK Property Investment Advisors, a financial creditor, citing an alleged default by the company. The NCLT admitted the plea on November 24, 2023, and appointed a resolution professional (RP). The RP subsequently formed the committee of creditors (CoC), which included ASK Trusteeship Services, homebuyers, and other stakeholders.
Settlement Proposal and Approval
The former management of Nobility submitted a resolution proposal on October 10, 2024. By January 26, 2025, ASK Property informed the RP that a formal settlement had been executed with the company's ex-management. Under the settlement, Nobility offered to pay Rs 108 crore against a total liability of Rs 775 crore owed to ASK Property. Additionally, a debt of Rs 220 crore owed to JM Financial is proposed to be settled through the allocation of 37 units, totaling approximately 1,00,400 square feet. The debt of Piramal Finance, amounting to Rs 26.6 crore, is to be settled through unit allocation in Phase II of the project.
Committee of Creditors Approval
The CoC approved the withdrawal proposal with a 92.5% voting share, exceeding the statutory threshold of 90% required under Section 12A of the Insolvency and Bankruptcy Code (IBC). The NCLT observed that all requirements under Section 12A had been duly complied with, and no objections were received from stakeholders. Nobility Estates did not respond to a request for comment.
