NCLAT directs withdrawal of insolvency against Mahagun

Appellate tribunal NCLAT has directed the withdrawal of insolvency proceedings against realty firm Mahagun after it has arrived at a settlement with its financial creditor.

A two-member bench of the National Company Law Appellate Tribunal (NCLAT) took on record the Settlement between Mahagun (India) and IDBI Trusteeship dated February 12, 2026. An application was moved by the financial creditor of Mahagun before a two-member bench of NCLAT to withdraw the insolvency proceedings against the realty firm.

“It is submitted that during the pendency of the matter before this Adjudicating Authority, the parties have entered into a settlement vide settlement agreement dated February 12, 2026. The Applicant/Financial Creditor seeks to withdraw IB-112(ND)/2025,” the NCLAT said in its order. Admitting it, NCLAT “dismissed as withdrawn” the insolvency Petition filed by the Financial Creditor. “In view of the above, all the pending applications stand disposed of,” said a two-page NCLAT order passed on February 17, 2026.

IDBI Trusteeship Service in its withdrawal application, has also sought liberty to restore/revive its insolvency Petition “in the event the Corporate Debtor (Mahagun) fails to adhere”.

Mahagun (India) was put under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) over a section 7 application filed by IDBI Trusteeship.

The NCLT had admitted the application claiming a default of Rs 256.48 crore over payment of non-convertible debentures (NCDs) issued for its Noida-based Mahagun Manorialle project.

Earlier in November last year, the NCLAT set aside another insolvency proceedings initiated against Mahagun, where it had directed the NCLT to hear the petition afresh, considering the fresh status report filed before it over the projects.