NCLAT directs withdrawal of the insolvency against Mahagun as parties arrive at settlement
NCLAT ordered the withdrawal of insolvency proceedings against Mahagun after a settlement was reached with its financial creditor, IDBI Trusteeship.Summary
The National Company Law Appellate Tribunal (NCLAT) has directed the withdrawal of insolvency proceedings against real estate firm Mahagun following a settlement agreement with IDBI Trusteeship, its financial creditor, dated February 12, 2026. The NCLAT bench acknowledged the settlement and dismissed the insolvency petition filed by IDBI Trusteeship. The financial creditor had initially moved to initiate insolvency proceedings over a default of Rs 256.48 crore related to non-convertible debentures (NCDs) issued for the Mahagun Manorialle project in Noida. IDBI Trusteeship has reserved the right to restore the insolvency petition if Mahagun fails to comply with the settlement terms. Previously, in November of last year, the NCLAT had also directed the National Company Law Tribunal (NCLT) to re-examine another insolvency proceeding against Mahagun, considering an updated status report.
(Source：The Economic Times)