NCLT common order on Section 12A plea to withdraw CIRP; Rs.10 Crore full and final settlement recorded
NCLT Mumbai Bench (Court-V) common order dated 16.10.2026 in C.P. (IB)/729(MB)/2025, a Section 7 petition by Tata Capital Housing Finance Limited against the company for default of ~Rs.
By ScoutQuest · · 3 min read
- Default amount in Section 7 petition
- ~Rs. 28.05 crore
- Settlement received by financial creditor
- Rs.10 Crore as a "Full and Final Settlement"
- Opposing financial creditors
- Six financial creditors shared intervention petitions opposing the proposed withdrawal
What this order is about
This is a common order of the NCLT Mumbai Bench (Court-V) dated 16.10.2026 in C.P. (IB)/729(MB)/2025, a petition under Section 7 of the Insolvency and Bankruptcy Code shared by Tata Capital Housing Finance Limited against the corporate debtor for default in repayment of ~Rs. 28.05 crore.
- I.A. No. 166 of 2026 was shared by the Interim Resolution Professional (IRP) under Section 12A of the Code, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP).
- I.A. No. 129 of 2026 was shared by the suspended director of the corporate debtor, seeking the same relief.
- Six financial creditors shared intervention petitions under Section 60(5) of the Code seeking to intervene and oppose the proposed withdrawal.
- The order records that all these applications are interrelated, were heard together and are being disposed of by this common order.
The settlement recorded
The corporate debtor was admitted into CIRP by order dated 12.12.2025, and the IRP published Form A dated 15.12.2025 inviting claims, with the last date for submission of proof of claims on or before 26.12.2025. The last date to constitute the Committee of Creditors was 04.01.2026.
Before the Committee of Creditors was constituted, the financial creditor told the IRP that it had amicably settled the matter with the suspended director. By email dated 01.01.2026 the financial creditor confirmed receipt of Rs.10 Crore from the corporate debtor as a "Full and Final Settlement", and issued Form FA dated 01.01.2026 confirming that the CIRP cost had been paid. The financial creditor also stated that its dues were settled through a one-time settlement dated 30.12.2025 and that it has no surviving claim and no objection to closure of the CIRP.
Who is opposing, and with what claims
Six financial creditors are opposing the withdrawal. Their claims as recorded in the order include:
- ~Rs. 3.95 crore and ~Rs. 6.85 crore owed to two financial creditors who had shared C.P. 588 of 2025, which was dismissed on 15.12.2025 with a direction to file claims before the IRP.
- Rs. 2.45 crore disbursed as principal by certain applicants, who issued a demand notice dated 02.07.2025 for outstanding dues of ~Rs. 5.21 crore and had shared C.P. 899 of 2025, dismissed on 08.05.2026 with a direction to file claims before the IRP.
The opposing creditors argue that once CIRP starts, the proceedings become collective and in rem, and rely on the Supreme Court judgment in GLAS Trust Company LLC vs. BYJUS Raveendran & Ors. They also submit that their claims have not been communicated as determined and that a claim of approximately Rs. 600 Crores was stated on behalf of the IRP before the NCLAT on 09.07.2026.
Procedural timeline recorded
- 08.11.2025: C.P. 729 of 2025 reserved for orders.
- 12.12.2025: admission order, CIRP initiated, IRP appointed.
- 15.12.2025: Form A published, claims invited till 26.12.2025.
- 04.01.2026: last date to constitute the Committee of Creditors.
- 06.01.2026: NCLAT directed the IRP to collate claims and restrained further steps, with liberty to file a Section 12A application.
- 26.05.2026: Section 8 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act 6 of 2026) brought into force; the applicants contend their application is to be judged as shared before this date.
What it means for a retail investor
The update is an update on the insolvency proceedings of the company. On one side, the original petitioner's default amount has been settled and paid, and the IRP has sought withdrawal of the CIRP. On the other, several financial creditors have formally opposed that withdrawal and pointed to their own unpaid dues. The order records these positions; the terms on which the applications are decided are set out in the order itself.
Also from Dharan Infra-EPC
NCLT order on IRP plea to withdraw CIRP; six financial creditors oppose the closure
19 Oct 2026
NCLT dismisses plea to withdraw CIRP; insolvency process to continue
19 Oct 2026
More numbers
- Default amount in the Section 7 petition by Tata Capital Housing FinanceRs. 28,04,91,115/-
- Amount received as full and final settlementRs.10 Crore
- Outstanding debt of first intervening financial creditorRs. 3,94,86,800/-
- Outstanding debt of second intervening financial creditorRs. 6,84,77,605/-
- Principal amount disbursed by certain applicantsRs. 2,45,00,000/
- Outstanding dues in demand notice dated 02.07.2025Rs. 5,20,50,000/-
- Claim stated on behalf of the IRP before NCLATRs. 600 Crores
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