NCLAT Defers Decision on Appeal Withdrawal, Links to Pending Homebuyer Case

Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi

Order Date: July 22, 2026

Case Overview

The NCLAT heard two interlocutory applications in Company Appeal (AT) (Ins) No. 1249 of 2019. IA No. 676 of 2026 was filed by appellant Sanjeev Abrol, suspended director of the corporate debtor, seeking permission to withdraw his appeal challenging the CIRP initiation order dated November 5, 2019. The appeal was filed against Rahul Singh & Ors. after the Adjudicating Authority allowed a Section 7 IBC application (CP(IB) No. 355 of 2019) against the corporate debtor.

Abrol argued that his appeal became infructuous after he settled with the original financial creditor and the Adjudicating Authority dismissed the Section 7 petition on January 3, 2022. He cited Rule 11 of NCLAT Rules, 2016 and judicial precedents including Flat Buyers Association Winter Hills case (2020) to support withdrawal.

The Interim Resolution Professional (IRP) opposed the withdrawal, alleging suppression of material facts and abuse of judicial process. The IRP contended that CIRP had become a proceeding in rem affecting all stakeholders, and the NCLAT had been conducting a reverse CIRP since March 13, 2020. The project remains incomplete despite six years of tribunal supervision, as confirmed by successive court commissioner reports.

IA No. 1340 of 2023 was filed by Active Valley Square Welfare Association seeking impleadment as party to the appeal. The association represents 92 homebuyers who are financial creditors in the residential project.

The tribunal noted extensive history: On December 4, 2019, Abrol gave proposals for project completion. On March 13, 2020, NCLAT directed IRP to call CoC meeting including allottees to explore settlement similar to Winter Hills and Rajesh Goyal cases. A meeting was held on July 26, 2020 for five hours where settlement plans were discussed. The tribunal appointed Advocate Abhishek Anand as court commissioner who submitted reports on March 5, 2024, August 31, 2024, and December 5, 2025 documenting construction status.

On November 20, 2025, NCLAT directed the promoter to submit affidavit detailing: flats already possessed, completed flats ready for possession, homebuyers who declined possession, expected completion date with funding requirements, and tower-wise completion details.

Final Outcome

The NCLAT deferred decision on both applications and scheduled final hearing for July 29, 2026. The tribunal decided to hear IA No. 676 of 2026 (withdrawal application), IA No. 1340 of 2023 (intervention application), Company Appeal (AT) (Ins) No. 1249 of 2019, and connected Company Appeal (AT) (Ins) No. 210 of 2022 (filed by homebuyers challenging withdrawal of Section 7 petition) simultaneously. The bench noted that the withdrawal application's outcome directly impacts the homebuyers' appeal and vice versa.

Topics: Real Estate Insolvency, NCLAT Proceedings, Homebuyer Rights