NCLT Ahmedabad Admits Edelweiss ARC’s Section 7 Petition Against Takshashila Heights After Supreme Court Dismissal

Background

The Ahmedabad Bench (Court–2) of the National Company Law Tribunal has admitted a Section 7 application filed by Edelweiss Asset Reconstruction Company Limited against Takshashila Heights Private Limited, thereby initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. Senior Counsel appearing for Edelweiss ARC submitted that the respondent corporate debtor had earlier challenged the insolvency proceedings before the Supreme Court of India by way of Civil Appeal No. 10012 of 2025. The Supreme Court, however, dismissed the appeal filed by the corporate debtor, thereby affirming the creditor’s entitlement to pursue insolvency proceedings. The said order of the Supreme Court was placed on record before the NCLT by way of a pursis. The Bench also heard the submissions made on behalf of the corporate debtor, represented by a Chartered Accountant, who appeared through virtual mode.

Findings and Order

Taking note of the dismissal of the appeal by the Supreme Court, the Tribunal held that there was no impediment to the admission of the Section 7 petition. The Bench observed that the financial debt and default stood established and that the statutory requirements under Section 7(5) of the Insolvency and Bankruptcy Code, 2016 were duly satisfied. Accordingly, the NCLT admitted the application and ordered initiation of CIRP against Takshashila Heights Private Limited with immediate effect. The Tribunal appointed Orion Resolution & Turnaround Private Limited, a registered Insolvency Professional Entity (IPE), as the Interim Resolution Professional (IRP).

The IRP was directed to take over the management of the corporate debtor forthwith and to issue a public announcement under Section 15 of the IBC inviting claims from creditors. Edelweiss ARC was also directed to deposit ₹2 lakh towards initial CIRP costs, subject to adjustment by the Committee of Creditors. A moratorium under Section 14 of the IBC was declared, staying all proceedings against the corporate debtor. The Registry was directed to communicate the order to all concerned stakeholders and forward a copy to the Insolvency and Bankruptcy Board of India for statutory compliance.