A promoter's settlement proposal for withdrawal of CIRP cannot override the commercial wisdom of the CoC, which has repeatedly rejected it and approved a competing resolution plan.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 12A, 29A - CIRP - Withdrawal of CIRP - Settlement Proposal - Approval of CoC - The promoter's proposal for withdrawal of CIRP under Section 12A was rejected multiple times by the CoC - The CoC, with 79.96% vote share, had approved a Resolution Plan by another party - The Hon'ble Supreme Court directed the Appellate Tribunal to consider the promoter's revised proposal - The Appellate Tribunal held that the settlement proposal for the 'Estella' project could not be accepted as the CoC had repeatedly rejected it, a Resolution Plan was already approved by the majority, and the promoter lacked credibility due to criminal proceedings and lack of binding financial commitments. (Paras 17-22)

(B) Insolvency and Bankruptcy Code, 2016 - CIRP - Project Completion - The Tribunal held that the promoter was obliged to complete the 'NCR Greens' project based on a prior undertaking before the Tribunal that the project was almost complete - The promoter was permitted to complete the project within 6 months, subject to the approval of the majority of the CoC, including the financial creditor. (Paras 25-27)

Facts of the case:
CIRP was initiated against the Corporate Debtor. The promoter's proposals for withdrawal under Section 12A were rejected by the CoC. The CIRP was revived and confined to 'Project Estella', while 'Project NCR Greens' was kept out based on the promoter's statement that it was almost complete. A Resolution Plan for 'Project Estella' by an SRA was approved by the CoC. The Supreme Court directed the Appellate Tribunal to consider the promoter's revised proposal for both projects. The promoter's proposal was opposed by the Resolution Professional, the homebuyers' representative, and the SRA.

Findings of Court:
The revised settlement proposal for 'Project Estella' was rejected due to repeated rejections by the CoC, the existence of an approved Resolution Plan, and lack of confidence in the promoter. For 'Project NCR Greens', the promoter was permitted to complete the project within 6 months, subject to approval by the majority of the CoC.

Issues: Whether the promoter's settlement proposal for 'Project Estella' should be accepted, and whether the promoter should be permitted to complete 'Project NCR Greens'.

Ratio Decidendi: A settlement proposal under Section 12A cannot override the commercial wisdom of the CoC, especially when the CoC has repeatedly rejected the proposal and approved a competing Resolution Plan. A promoter who has given an undertaking to complete a project is bound by that undertaking.

Result: IA No. 919 of 2026 and connected applications disposed of. Order to be placed before the Hon'ble Supreme Court in the pending appeal."

Table of Content
1. background and procedural history of cirp (Para 1 , 2 , 3 , 4)
2. status of estella project and promoter's proposal (Para 5 , 6 , 7)
3. arguments against promoter's proposal for estella (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
4. court's analysis rejecting promoter's estella proposal (Para 16 , 17 , 18 , 19 , 20 , 21 , 22)
5. analysis and direction for ncr greens completion (Para 23 , 24 , 25 , 26 , 27)
6. final orders and disposal of applications (Para 28 , 29)

J U D G M E N T

(05^th May, 2026)

Ashok Bhushan, J.

1.This application (I.A. No. 919 of 2026) has been filed by Sidharth Chauhan, Director (Powers Suspended) of Corporate Debtor- Sidhartha Buildhome Private Limited, the promoter of the Corporate Debtor consequent to the order passed by the Hon’ble Supreme Court dated 02.12.2025 in Civil Appeal No.12980 of 2025- “Ravindra Kumar Singh & Ors. vs. Punjab & Sind Bank & Ors.” making following prayers:-

“a) Grant hearing on the Applicant's Proposal dated 30.10.2025 and 30.11.2025 (Annexure A-5 & Annexure A-7) at the earliest possible date in compliance with the directions passed by the Hon'ble Supreme Court vide order dated 02.12.2025, and/or;

b) Take the Applicant's Proposal dated 30.10.2025 and Revised Proposal dated 30.11.2025 on record and consider the same in accordance with the directions issued by the Hon'ble Supreme Court vide order dated 02.12.2025, and/or;

c) Permit the Applicant to file a Detailed Resolution Plan/Proposal in the interest of all the stakeholder, if so directed, and/or;

d) Pass such other or further orders as this Hon'ble Appellate Tribunal may deem fit in the interest of justice and in the interest of Banks, homebuyers and all stakeholders.”

2. We need to notice certain background facts of the case to consider the prayers made in the application.

2.1. On an application filed by Punjab National Bank under Section 7 of the IBC, CIRP against the Corporate Debtor- M/s. Sidhartha Buildhome Private Limited commenced on 04.03.2021 in CP (IB) No.717/ND/2019. The promoter of the Corporate Debtor submitted a proposal under Section 12A of the withdrawal of the CIRP which was rejected by the CoC on 06.08.2021. Under order of the Adjudicating Authority, withdrawal proposal under Section 12A was again considered and rejected by the CoC on 15.02.2022. 2nd withdrawal proposal was not approved by the CoC in meeting dated 10.01.2023 which was challenged by promoter by IA No.753 of 2023 which was allowed by the NCLT on 24.05.2023 permitting withdrawal of the CIRP under Section 12A. The said order was challenged before this Tribunal in Company Appeal (AT) (Insolvency) No.791 of 2023 which Appeal was allowed by this Tribunal by judgment dated 16.02.2024. This Tribunal set aside the order allowing withdrawal and directed for CIRP to revive and confine to Project Estella. Project NCR Greens was kept out of CIRP on submission of the promoter that Project NCR Greens is complete. Order dated 16.02.2024 was challenged in the Supreme Court by homebuyers which also came to be dismissed by the Hon’ble Supreme Court. In the CIRP of the Corporate Debtor, a Resolution Plan was submitted by Alpha Corp on 26.06.2024. The Resolution Plan submitted by Alpha Corp was came for consideration in 35th CoC meeting held on 10.09.2024 which Resolution Plan was approved by 79.96% of the vote share of the CoC. An IA No.57 of 2024 was filed by the Resolution Professional for approval of the Resolution Plan before NCLT which is pending consideration. Punjab & Sind Bank had filed an application before NCLT for initiating CIRP against the Corporate Debtor which was rejected against which Punjab & Sind Bank filed an appeal before this Tribunal, which came to be dismissed. An IA No.3206 of 2025 was filed in Company Appeal (AT) (Insolvency) No.791 of 2023 seeking clarification of the order dated 16.02.2024. By the order dated 09.09.2025 passed by this Tribunal in IA No.3206 of 2025 filed by the Punjab & Sind Bank, this Tribunal clarified that the

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2026 Supreme(Online)(NCLAT) 525

NATIONAL COMPANY LAW APPELLATE TRIBUNALAshok Bhushan (Chairperson) , Mr. Barun Mitra (Member (Technical)) ,Devendra Singh – AppellantVersusHOMEBUYERS OF SIDHARTHA BUILDHOME PVT. LTD. AND ORS. – Respondent1210/ND/2026 IA

A promoter's settlement proposal for withdrawal of CIRP cannot override the commercial wisdom of the CoC, which has repeatedly rejected it and approved a competing resolution plan.

NATIONAL COMPANY LAW APPELLATE TRIBUNAL
Ashok Bhushan (Chairperson) , Mr. Barun Mitra (Member (Technical)) ,
Devendra Singh – Appellant
Versus
HOMEBUYERS OF SIDHARTHA BUILDHOME PVT. LTD. AND ORS. – Respondent
1210/ND/2026 IA