Dharan Infra-EPC CIRP withdrawal: NCLAT order 2026

What changed for Dharan Infra-EPC

Dharan Infra-EPC Limited has reported a key legal step in its effort to exit the Corporate Insolvency Resolution Process (CIRP) after settling dues with its original financial creditor, Tata Capital Housing Finance Limited. The update is significant because the withdrawal of CIRP requires a formal process and tribunal approval even after a settlement is reached. The National Company Law Appellate Tribunal (NCLAT) has directed the Interim Resolution Professional (IRP) to move the National Company Law Tribunal (NCLT), Mumbai Bench, for withdrawal. The company has also disclosed that it remains under CIRP while other regulatory processes, including SEBI’s information requests, continue. Alongside the legal updates, the company’s financial results showed a widened quarterly loss during this period.

CIRP background and the creditor dispute

Dharan Infra-EPC was admitted into CIRP by the NCLT Mumbai on December 12, 2025, due to unpaid dues to Tata Capital Housing Finance Ltd. The insolvency process was triggered by a default claim of about INR 28.04 crore, as disclosed in the company’s updates. The company later disclosed that the outstanding dues were settled with the financial creditor through a one-time settlement. According to the filing, the company cleared the entire outstanding dues on December 31, 2025. This settlement is central to the company’s attempt to withdraw the insolvency proceedings.

Settlement details and what the company disclosed

The company stated that it resolved the dues with Tata Capital Housing Finance Limited and cleared the full outstanding amount on December 31, 2025. Separate updates also referenced a settlement amount of INR 28.05 crore. The company further indicated that a payment of INR 10 crore had been made as part of the settlement process, with the withdrawal application pending. Because the company is under CIRP, these disclosures were made as part of regulatory and exchange communications during the insolvency framework. Dharan Infra-EPC also clarified in one update that some loans remain classified under default, but they are secured by collateral valued at approximately double the principal outstanding amount.

NCLAT’s directions: Section 12A withdrawal route

In its order dated January 6, 2026, the NCLAT, after being apprised of the settlement, directed the IRP to take steps to withdraw the CIRP. The tribunal asked the IRP to approach the NCLT, Mumbai Bench, by filing an application under Section 12A of the Insolvency and Bankruptcy Code, 2016. Section 12A is the legal route that allows withdrawal of insolvency proceedings, subject to due process. The NCLAT also clarified that no further actions should be undertaken in the CIRP in the interim. As part of the same directions, the IRP was asked to collate claims received during the CIRP period.

What happens at the NCLT next

The IRP has initiated the process of filing the Section 12A application before the NCLT Mumbai Bench to withdraw the insolvency case. The withdrawal application seeks to withdraw the original Section 7 application that initiated the CIRP. The next hearing was scheduled for January 29, 2026, as stated in the company’s update. Until the NCLT decides on the withdrawal application, the company remains under CIRP, even though the principal creditor’s dues have been settled. This sequencing is important for shareholders because the legal status changes only after tribunal approval.

SEBI’s information requests during CIRP

Separately, Dharan Infra-EPC disclosed that SEBI sought information, records, and data in connection with an ongoing investigation. The company stated that its suspended directors, key managerial personnel (KMP), and statutory auditor had not furnished information sought by SEBI despite repeated summons and reminders. The company also said it remained under CIRP while the regulator’s investigation continued. In another update, Dharan Infra-EPC said it was responding to information and data sought by SEBI. It added that SEBI had summoned the company’s directors and KMP in May and June 2026 for records relating to the period before the CIRP began, and that the suspended board and KMP sought a further seven-day extension to complete the submission.

Financial snapshot: losses reported during the process

The company disclosed that it reported a consolidated net loss of INR 4.19 crore for the quarter ended September 30, 2025. Another update stated that the company reported a widened Q2FY26 loss of INR 4.0771 crore (converted from INR 407.71 lacs) amid corporate insolvency proceedings. These results were released while the company was undergoing a significant restructuring phase, with the CIRP withdrawal process underway. The filings linked the financial reporting period with the ongoing legal and compliance developments, including the CIRP status and tribunal proceedings.

Key facts at a glance

Market context and why the development matters

The company’s filings described the settlement and the tribunal-led withdrawal process as a step toward exiting insolvency proceedings, subject to NCLT approval. For investors, the critical point is that settlement alone does not automatically end CIRP, because the insolvency framework requires the tribunal to allow withdrawal under Section 12A. The NCLAT’s instruction to pause further CIRP actions, while the IRP collates claims and files the withdrawal application, indicates a procedural holding pattern until the NCLT decides. At the same time, the SEBI-related disclosures show that regulatory scrutiny over pre-CIRP records can continue irrespective of the insolvency status.

Conclusion

Dharan Infra-EPC has disclosed that it settled dues with Tata Capital Housing Finance on December 31, 2025, following which the NCLAT directed the IRP to file a Section 12A application for CIRP withdrawal before the NCLT Mumbai Bench. The IRP is proceeding with the filing, and the matter was listed for further hearing on January 29, 2026. Until the NCLT rules on the withdrawal request, the company continues to remain under CIRP even as it addresses SEBI’s information requests and reports losses during the period.