Home / Business and Economy / NCLT Allows Mahagun Settlement, Halts Insolvency
NCLT Allows Mahagun Settlement, Halts Insolvency
21 Feb
Summary
- Mahagun's insolvency proceedings were withdrawn after a settlement.
- The settlement resolves a default claim of approximately Rs 256 crore.
- NCLT order disposed of all pending applications in the matter.
The National Company Law Tribunal (NCLT) has permitted the withdrawal of insolvency proceedings against the real estate developer Mahagun. This development comes after Mahagun successfully negotiated a settlement with IDBI Trusteeship Services, the financial creditor. The initial insolvency petition was filed by IDBI Trusteeship concerning an alleged default of approximately Rs 256.48 crore, related to non-convertible debentures for the Mahagun Manorialle project.
Following a prior NCLT order that had admitted the insolvency plea and appointed an interim resolution professional, Mahagun challenged this decision. The National Company Law Appellate Tribunal (NCLAT) later set aside the NCLT's order, directing a rehearing and noting insufficient opportunity for Mahagun to present its case. Intervention applications from homebuyers of other Mahagun projects were also considered during these proceedings.
With the NCLT now accepting the settlement and allowing the withdrawal, all related applications are disposed of. Mahagun has affirmed its commitment to its execution roadmap and timely project delivery, with IDBI Trusteeship retaining rights to act if settlement terms are not met.
