NCLAT Rejects Plea to Close Raheja Shilas Insolvency Case
April 03, 2026
The National Company Law Appellate Tribunal (NCLAT) declined Raheja Developers' request to terminate the insolvency proceedings concerning Raheja Shilas, citing unresolved issues with flat buyers. The tribunal stated that a Section 12A application to withdraw CIRP can only be filed post-settlement between flat buyers and the developer.
The National Company Law Appellate Tribunal has ruled against closing the insolvency resolution process for Raheja Developers' project, Raheja Shilas, in Gurugram. The tribunal highlighted unresolved issues with flat buyers as a blocking point in the proceedings.
In its ruling, the NCLAT bench, led by Chairperson Justice Ashok Bhushan, remarked that the closure plea under the Insolvency and Bankruptcy Code's Section 12A is premature since issues between the parties remain unsettled. The tribunal emphasized that flat buyers could independently initiate an application under the same section.
Lawyers for Navin Raheja, CMD of the developer, argued in favor of closing the corporate insolvency resolution process, citing possession and occupancy certificates issued to buyers. However, NCLAT noted unresolved matters and confined proceedings to Raheja Shilas while allowing separate actions on other projects.
In its ruling, the NCLAT bench, led by Chairperson Justice Ashok Bhushan, remarked that the closure plea under the Insolvency and Bankruptcy Code's Section 12A is premature since issues between the parties remain unsettled. The tribunal emphasized that flat buyers could independently initiate an application under the same section.
Lawyers for Navin Raheja, CMD of the developer, argued in favor of closing the corporate insolvency resolution process, citing possession and occupancy certificates issued to buyers. However, NCLAT noted unresolved matters and confined proceedings to Raheja Shilas while allowing separate actions on other projects.