# JM Financial Asset Reconstruction Company Ltd. vs. ASK Trusteeship Services Pvt. Ltd. & Ors.

> NCLAT judgment dated 9 Mar 2026. Citation: TCN-2026-NCLAT-00051. JM Financial Asset Reconstruction Company Ltd. filed an appeal against an NCLT order dated…

- **Court:** NCLAT
- **Order date:** 9 Mar 2026
- **Citation:** TCN-2026-NCLAT-00051
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jm-financial-asset-reconstruction-company-ltd-vs-ask-trusteeship-services-pvt-lt-3wd63

## Summary

### Background

JM Financial Asset Reconstruction Company Ltd. filed an appeal against an NCLT order dated 22.04.2024, which admitted a Section 7 application filed by ASK Trusteeship Services Pvt. Ltd. and two other applicants, initiating Corporate Insolvency Resolution Process (CIRP) against ATS Heights Private Limited. An interim order was passed on 09.05.2024, directing that no further steps be taken in the CIRP except for construction to be carried out under the Interim Resolution Professional's (IRP) supervision, utilizing RERA account funds with cooperation from Financial Creditors.

## Facts

An appeal was filed against an order dated 22.04.2024, which admitted a Section 7 application filed by ASK Trusteeship Services Pvt. Ltd. and two other applicants.

An interim order was passed on 09.05.2024, directing that no further steps be taken in the CIRP except for construction under the IRP with the assistance of officers and staff of the corporate debtor.

The interim order also allowed the RERA account funds earmarked for construction to be used under the instructions of the IRP and other signatories, with Financial Creditors extending cooperation.

IA No. 1670 of 2026 was filed by the Interim Resolution Professional (IRP) seeking withdrawal of the CIRP.

A Settlement Agreement was entered into between the parties on 24.01.2026.

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## Issues and analysis

### Issue 1: Withdrawal of CIRP based …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC) read with Regulation 30A of the

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**Reasoning:** A Settlement Agreement dated 24.01.2026 was entered into, and Form FA dated 23.02.2026

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**Interpretation:** The NCLAT interpreted that despite the settlement and Form FA, the formal

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**Application:** The NCLAT directed the IRP to file the Section 12A application before the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** JM Financial…
- **Respondents:** ATS Heights…; ASK Trusteeship…
- **Other parties:** Insolvency and…; Corporate…; +6 more

## Timeline

- **2024-04-22 — Section 7 Application…**: Adjudicating Authority passed an order admitting a Section 7 application filed by ASK…
- **2024-05-09 — NCLAT Interi…**: NCLAT passed an interim order directing no further steps in the CIRP except construction…

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