We enclose herewith the copy of order passed by Hon'ble NCLAT, New Delhi.For further information, kindly refer the attachment.
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The Hon'ble NCLAT, Principal Bench, New Delhi has passed an order dated May 4, 2026 in favor of Embassy Developments Limited (formerly Equinox India Developments Limited). The NCLAT set aside the earlier NCLT order dated December 9, 2025 that had admitted a Section 7 Corporate Insolvency Resolution Process (CIRP) petition filed by Canara Bank. The NCLAT dismissed the Section 7 petition (C.P. No.317 of 2025), quashing the CIRP against the company. The appellate tribunal found that the company's corporate guarantee dated June 30, 2010 only obligated it to infuse equity capital in a project, not to repay the principal borrower's debt. A subsequent guarantee deed dated January 11, 2012 had substituted new guarantors and discharged the company. The loan recall notice was also issued during the Section 10A period, making the application barred. The company now stands fully relieved from insolvency proceedings and continues to operate in normal course.
Positive for shareholders - The quashing of insolvency proceedings means the company avoids potential restructuring or liquidation. The stock should see a positive reaction as the major legal uncertainty has been resolved in the company's favor.