NCLT Closes Insolvency Proceedings Against ATS Le Grandiose Developer (Nobility Estates) After Settlement
NCLT Approves Settlement, Closes Insolvency Against Le Grandiose Developer
The National Company Law Tribunal (NCLT) has closed the corporate insolvency resolution process (CIRP) against Nobility Estates Private Limited, the developer of the ATS Group's 'Le Grandiose' housing project in Noida, following approval of a settlement between lenders and the company's former management.
The decision was issued by the NCLT Principal Bench, consisting of Acting President Bachu Venkat Balaram Das and Technical Member Ravindra Chaturvedi. The tribunal accepted an application under Section 12A of the Insolvency and Bankruptcy Code seeking withdrawal of insolvency proceedings that began in November 2023.
Creditor and Homebuyer Support
The Committee of Creditors (CoC) approved the withdrawal proposal with a 92.52 per cent voting share, exceeding the 90 per cent threshold mandated by the Insolvency and Bankruptcy Code. The order recorded support for the proposal from 636 homebuyers.
Financial Settlement Terms
In terms of the settlement executed between the parties, the ex-management had offered a settlement amount of Rs 108 crore against the liability of Rs 775 crore owed to the financial creditor ASK Property Investment Advisors. 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.
Regulatory and Construction Commitments
The terms include NEPL agreeing to obtain revalidation of the sanctioned map and renew its RERA licence within 120 days of the Section 12A application being allowed. NEPL has also committed to complete construction of Phase II for the project within 48 months of the CIRP withdrawal, and provide monthly and quarterly progress, sales, and financial reports.
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.
Project and Developer Background
Situated in Sector 150, Noida, it is well connected via road networks such as Greater Noida Expressway and Yamuna Expressway. Additionally, many reputed schools and hospitals are also present near this development.
ATS Infrastructure Limited (ATS) is an Indian real estate company, founded in 1998 by Getamber Anand. Its Headquarter is located in Noida, Uttar Pradesh. The company has nearly 35000+ satisfied customers, 4500 dedicated workforce, extraordinary in-house construction, security, facility and maintenance teams and unmatched brand equity. Under the leadership of ATS Getamber Anand, the company has developed approximately 39 million sq ft of land and successfully delivered 30 projects across the country.
Context: Wider Settlement Trend
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. This order follows a recent NCLT decision allowing withdrawal of insolvency proceedings against ATS Heights Private Limited, developer of the ATS Knightsbridge project, under the same provision of the insolvency law.