Dharan Infra-EPC Limited remains under the Corporate Insolvency Resolution Process (CIRP) after the Mumbai NCLT dismissed an application to withdraw insolvency proceedings. The court rejected the request despite a settlement agreement previously reached with creditor Tata Capital. The company will now continue to operate under the provisions of the Insolvency and Bankruptcy Code (IBC) under the oversight of an appointed professional.
Dharan Infra-EPC: NCLT Rejects Move to Exit Insolvency
- NCLT Mumbai dismisses withdrawal application for CIRP
- Company remains under IBC process after settlement exit fails
Reader Takeaway: The failed settlement with Tata Capital forces the company to continue its insolvency resolution process under NCLT oversight.
What just happened
The National Company Law Tribunal (NCLT), Mumbai Bench, issued an order on October 16, 2026, officially dismissing the application filed by Dharan Infra-EPC to withdraw its Corporate Insolvency Resolution Process (CIRP). The company had sought this withdrawal based on a settlement reached with its creditor, Tata Capital. With this order, the exit attempt has been denied.
Why this matters
This ruling confirms that the company cannot exit the insolvency framework at this stage. Management and stakeholders must now adhere to the ongoing processes stipulated by the Insolvency and Bankruptcy Code (IBC). Control of the entity remains under the supervision of the appointed Insolvency Resolution Professional.
Risks to watch
Investors should be aware of the uncertainty surrounding the resolution timeline. Since the attempt to exit through a bilateral settlement with Tata Capital did not pass judicial muster, the company is now fully subject to the standard IBC resolution pipeline, which may involve liquidation or the search for a new resolution plan if no further settlements are approved.
What to track next
Shareholders should closely watch future disclosures from the Insolvency Resolution Professional. Specifically, updates regarding the status of the CIRP, any new submission of resolution plans, and potential court-approved settlements are critical to determining the future of the company's operations and equity value.