NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has ordered the withdrawal of insolvency proceedings against Mahagun Realty after the company reached a settlement with its financial creditor.
A two-member bench of NCLAT acknowledged the settlement agreement between Mahagun (India) and IDBI Trusteeship, dated February 12, 2026.
A request was submitted by the financial creditor to the NCLAT to retract the insolvency proceedings against Mahagun.
“During the pending matter before this Adjudicating Authority, the parties have entered into a settlement agreement dated 12.02.2026. The Applicant/Financial Creditor wishes to withdraw IB-112(ND)/2025,” stated the NCLAT in its order.
The NCLAT subsequently “dismissed as withdrawn” the insolvency petition filed by the financial creditor. “In light of this, all pending applications are disposed of,” noted a two-page order issued by the NCLAT on February 17, 2026.
IDBI Trusteeship, in its withdrawal application, has requested the option to restore its insolvency petition “if the Corporate Debtor (Mahagun) fails to comply”.
Mahagun (India) was earlier placed under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) following a Section 7 application by IDBI Trusteeship.
The NCLT had accepted the application due to a default of Rs 256.48 crore related to the payment of non-convertible debentures (NCDs) for its Mahagun Manorialle project located in Noida.
In November of the previous year, the NCLAT had set aside another insolvency proceeding initiated against Mahagun, directing the NCLT to reconsider the petition based on a new status report regarding the projects.
