The National Company Law Appellate Tribunal (NCLAT) has ordered the withdrawal of insolvency proceedings against NCR-based real estate developer Mahagun after the company reached a settlement with its financial creditor.
Mahagun (India) Pvt Ltd had earlier been admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) following a Section 7 application filed by IDBI Trusteeship Services Limited. The petition alleged a default of ₹256.48 crore related to non-convertible debentures (NCDs) issued for the company’s Noida-based Mahagun Manorialle project.
Following the settlement, the NCLT’s New Delhi Bench–III, through an order dated February 17, 2026, approved the withdrawal of the insolvency proceedings, bringing the matter to a close, the company said in a statement.
The insolvency application filed by IDBI Trusteeship under the Insolvency and Bankruptcy Code, 2016, had earlier been admitted by the tribunal on August 5, 2025. Subsequently, the order was challenged before the National Company Law Appellate Tribunal (NCLAT), which, in its judgment dated November 6, 2025, set aside the admission order and remanded the matter for fresh consideration.
During the course of proceedings, Mahagun and IDBI Trusteeship entered into a Settlement Agreement dated February 12, 2026. The Financial Creditor thereafter filed an application before the National Company Law Tribunal seeking withdrawal of the insolvency petition. The tribunal has taken the settlement on record and dismissed the company petition as withdrawn, it said.
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. A two-member bench of the NCLAT took on record the Settlement between Mahagun (India) and IDBI Trusteeship dated February 12, 2026.
“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 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Admitting it, NCLAT “dismissed as withdrawn” the insolvency Petition filed by the financial Creditor.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”.
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.
The real estate firm said that it “remains committed to delivering possession of apartments to our customers with the quality and standards that we have consistently upheld. The successful resolution of the proceedings marks an important step forward for the company, enabling us to focus on timely execution, customer confidence, and long-term value creation.”
Mahagun Manorialle is an ultra-luxury residential development located in Sector 128, Wish Town, along the Noida–Greater Noida Expressway in Noida. The project comprises six towers rising up to 40 floors, housing around 400 premium residences, including spacious 3 BHK, 4 BHK and penthouse units.
Positioned in the luxury segment, the development features golf course–facing homes, a terrace-level infinity pool, and an expansive rooftop clubhouse, offering a resort-style living experience with panoramic views and low-density planning.
With PTI inputs
