NCLAT Rules in Favour of Embassy Developments; Insolvency Proceedings Quashed

Embassy Developments Limited ("the Company") today announced that it has secured a favourable judgement from the Hon'ble National Company Law Appellate Tribunal ("NCLAT"), New Delhi, which has set aside the earlier National Company Law Tribunal, New Delhi (NCLT) order admitting insolvency proceedings against the Company, thereby quashing the Corporate Insolvency Resolution Process ("CIRP").

Pursuant to the NCLAT's order:

- The impugned order dated December 9, 2025, passed by the NCLT, admitting CIRP against the Company has been set aside;

- The CIRP initiated against the Company stands quashed and closed;

- The interim protection granted earlier stands subsumed into the final judgment; and

- All directions arising from the NCLT order stand terminated and disposed of.

Accordingly, the Company stands fully relieved from all insolvency proceedings.

The Company reiterates that it remains financially sound and continues to operate in the normal course, with no impact on its business operations, projects, or stakeholders. This is further reflected in the Company's strong operational performance in FY26, during which Embassy Developments recorded presales of approximately ₹4,600 crore, including its highest-ever quarterly bookings in Q4, underscoring sustained demand and execution momentum.

Commenting on the development, Jitu Virwani, Chairman, Embassy Developments Limited, said, "We welcome the Hon'ble NCLAT's order, which upholds our position. This was a legacy issue whereby a letter by Indiabulls Real Estate to fund any shortfall in equity for a past affiliate has been misconstrued and misrepresented as a corporate guarantee. We pursued the appeal with full confidence in the strength of our case. We are aware of the pain this issue has caused our shareholders and welcome the relief this brings to the shares of the Company. Our business and operating performance has performed strongly throughout this period, reflecting the resilience of our platform and the strength of our underlying fundamentals."

Shares of Indiabulls Real Estate Limited was last trading in BSE at Rs. 48.33 as compared to the previous close of Rs. 46.03. The total number of shares traded during the day was 131684 in over 344 trades.

The stock hit an intraday high of Rs. 48.33 and intraday low of 44.61. The net turnover during the day was Rs. 6262370.00.

Source : Equity Bulls

Keywords

EmbassyDevelopments INE069I01010 Realty InsolvencyProceedings Quashed