New Delhi, February 22 The National Company Law Appellate Tribunal (NCLAT) has directed the withdrawal of insolvency proceedings against realty firm Mahagun after it has reached an agreement with its financial creditor.
A two-member bench of the National Company Law Appellate Tribunal (NCLAT) took note of the settlement agreement between Mahagun (India) and IDBI Trusteeship, dated February 12, 2026.
A financial creditor of Mahagun moved an application 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 12.02.2026. The Applicant/Financial Creditor seeks to withdraw application IB-112(ND)/2025," the NCLAT said in its order.
Admitting this, the NCLAT "dismissed as withdrawn" the insolvency petition filed by the financial creditor.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.
In its withdrawal application, IDBI Trusteeship Service also sought the liberty to restore/revive its insolvency petition "in the event the Corporate Debtor (Mahagun) fails to adhere".
Mahagun (India) was placed under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) following an application filed by IDBI Trusteeship.
The NCLT had admitted the application, claiming a default of Rs 256.48 crore due to non-payment of non-convertible debentures (NCDs) issued for its Noida-based Mahagun Manorialle project.
Earlier in November last year, the NCLAT had set aside another insolvency proceedings initiated against Mahagun, directing the NCLT to hear the petition afresh, considering the fresh status report filed before it regarding the project.
