Dharan Infra-EPC541161CIRP or IBC

NCLT order on IRP plea to withdraw CIRP; six financial creditors oppose the closure

NCLT Mumbai order covers applications to withdraw the insolvency process (CIRP) of the company under Section 12A.

By ScoutQuest · Mon 19 Oct 2026, 3:21 PM IST · 4 min read

Settlement Received by Original Petitioner: Rs. 10 Crore as a full and final settlement
Claim Cited in NCLAT Proceedings: approximately Rs. 600 Crores
Opposing Financial Creditors: Six financial creditors have intervened to oppose the withdrawal

I.A. No. 166 of 2026 is shared by the Interim Resolution Professional, or IRP, under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process, or CIRP, of the company.
I.A. No. 129 of 2026 is shared by the suspended director of the company seeking the same relief.
Six financial creditors shared intervention petitions under Section 60(5) seeking to intervene and oppose the proposed withdrawal. All these applications were heard together and are being disposed of by a common order.

Tata Capital Housing Finance Limited shared Company Petition 729 of 2025 under Section 7 of the Code for default in repayment of ~Rs. 28.05 crore.
The Tribunal admitted the company into CIRP on 12.12.2025 and appointed the IRP. Claims were invited through Form A dated 15.12.2025, with the last date for submitting proof of claims on or before 26.12.2025. The last date to constitute the Committee of Creditors was 04.01.2026.

While final verification of claims was underway and before the Committee of Creditors was constituted, the original 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 company as a "Full and Final Settlement", and issued Form FA dated 01.01.2026 confirming that the CIRP cost had been paid to the IRP.
That creditor's dues were settled through a one-time settlement dated 30.12.2025, and it states it has no surviving claim and no objection to closure of the CIRP.
NCLAT, by order dated 06.01.2026, directed the IRP to collate the claims in accordance with law, restrained him from taking any further steps, and granted liberty to file an application under Section 12A.

Mr. Gajanan Damodar Deokar and M/s. G.D. Deokar & Sons cite outstanding debt of ~Rs. 3.95 crore and ~Rs. 6.85 crore. Their own Section 7 petition, CP 588 of 2025, was dismissed on 15.12.2025 with a direction to file a claim before the IRP, which they did on 02.01.2026.
M/s. Metro Associates and Metro Polymers Private Limited say they disbursed a principal of Rs. 2.45 crore and issued a demand notice dated 02.07.2025 for outstanding dues of ~Rs. 5.21 crore.
M/s. Metro Industries, LIC Housing Finance Limited, Capri Global Capital Limited and Canara Bank also appear as financial creditors in the intervention petitions.
Their core argument: once CIRP starts, the proceedings are collective and in rem and all creditors are necessary stakeholders; they rely on the Supreme Court's GLAS Trust judgment. They say they have not been communicated any determination of their claims and their names are not reflected in the list of creditors.
They also point to the NCLAT order dated 09.07.2026, which recorded the IRP's submission that a claim of approximately Rs. 600 Crores had been received, while the IBBI portal extract for the company as on 08.08.2026 reflects "Total Records: 0" under the List of Claims.

The IRP describes its role as neutral and says it is bound by the commercial wisdom of the Committee of Creditors and the directions of the Tribunal.
It is also submitted that the intervenors had already stated before NCLAT that they have shared independent applications under Section 7 of the Code, and may pursue those separate remedies.
The withdrawal application and Form FA were shared in January 2026, before 26.05.2026, when Section 8 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 was brought into force; there is a submission on which regime applies to the adjudication.

A company admitted into CIRP normally goes through a creditors' committee and a resolution process. A Section 12A withdrawal, if allowed, ends that process because the original lender has been paid and has settled.
Here that settlement covers the original petitioner's claim, but other financial creditors say they remain unpaid and want their claims considered before the process is closed. The order records their objections and the replies of the IRP and the original lender, heard together for a common order.

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