New Delhi [India], March 22 (ANI): The National Company Law Tribunal (NCLT), New Delhi Bench, has permitted the withdrawal of corporate insolvency resolution proceedings (CIRP) initiated 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 tribunal, 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13, allowed an application seeking withdrawal of the insolvency proceedings and dismissed the company's petition as withdrawn.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 had originally been initiated under Section 7 of the IBC by ASK Trusteeship Services Private Limited.

The insolvency application against ATS Heights Private Limited was admitted by the NCLT on April 22, 2024, leading to the commencement of CIRP and appointment of an interim resolution professional.

Subsequently, the admission order was challenged before the National Company Law Appellate Tribunal (NCLAT), which stayed further insolvency proceedings in May 2024. The appellate tribunal, however, permitted construction activities to continue under supervision to safeguard the interests of homebuyers.

Following this, a settlement was arrived at between the parties, pursuant to which an application under Section 12A of the IBC was filed before the NCLT seeking withdrawal of the CIRP. Accepting the plea, the tribunal formally closed the insolvency process.

With the NCLT allowing withdrawal of CIRP, the insolvency proceedings in respect of the ATS Knightsbridge project stand terminated. The order effectively restores control of the project to the developer, enabling it to proceed with construction and delivery timelines in accordance with applicable regulatory conditions.

The project is reported to be at an advanced stage, with structural work across towers either completed or nearing completion. A tentative handover timeline of 18-24 months has been indicated, subject to environmental and regulatory factors.

The NCLT's order shows the statutory framework under Section 12A of the IBC, which allows withdrawal of insolvency proceedings post-admission, subject to approval, where parties reach a settlement. The case also highlights judicial balancing of creditor rights with the protection of homebuyers' interests, particularly through the interim directions of the NCLAT permitting continued construction during the pendency of proceedings.(ANI)