Noida: National Company Law Tribunal (NCLT) has dismissed as withdrawn an insolvency petition filed by IDBI Trusteeship Services Ltd against the Mahagun real estate firm, after the parties signed an agreement earlier this month.
On Aug 5 last year, an insolvency application filed by IDBI Trusteeship was admitted by the tribunal. The order was subsequently challenged before the National Company Law Appellate Tribunal (NCLAT), which, in its judgment dated Nov 6, 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 on Feb 12 this year. The financial creditor then filed an application before the NCLT seeking withdrawal of the insolvency petition. The tribunal took the settlement on record and dismissed the company petition as withdrawn.
The financial creditor had sought liberty to revive the petition in the event of non-adherence to the settlement terms. The order further recorded that all pending applications in the matter stood disposed of.
The bench, comprising technical member Reena Sinha Puri and judicial member Bachu Venkat Balaram Das, noted that "during the pendency of the matter… the parties entered into a settlement vide settlement agreement dated Feb 12, 2026" and that the financial creditor sought withdrawal of the insolvency proceedings. Allowing the request, the bench on Feb 17 ordered that the insolvency petition be "dismissed as withdrawn" and further observed, "In view of the above, all the pending applications stand disposed of."
The closure of proceedings is expected to provide relief to homebuyers and investors associated with Mahagun Manorialle, the company's residential project located in Jaypee Wish Town, Sector 128, along Noida Expressway.
The Manorialle project comprises six towers, each rising 40 floors, with approximately 400 residential units. The configuration includes 3 BHK and 4 BHK apartments, as well as penthouse units.
Following the tribunal's order, the company said construction activity was intensified under a focused execution plan. It set a target of completion for March 2027, with phased delivery of units.
Mahagun added that it remains committed to adhering to terms of the settlement and prioritising transparency, operational discipline, and timely possession for customers. Resolution of the insolvency matter, the company said, will allow it to concentrate fully on execution and restoring buyer confidence.
A Mahagun spokesperson said the company remains committed to delivering possession of apartments to customers with the quality and standards it 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," the spokesperson said.
Aditya Dev is an assistant editor at The Times of India. He repor...
Read MoreAditya Dev is an assistant editor at The Times of India. He reports on all three industrial development authorities — Noida Authority, Greater Noida Authority, and Yamuna Expressway Authority — focusing on real estate, infrastructure, and government policies that impact industry and commerce. He also covers court cases involving developers and industries in the NCLT, Allahabad High Court, and the Supreme Court. With over 17 years of experience in journalism across various cities, he has reported on a wide range of beats, including health, education, crime, courts, and the environment. He is driven by curiosity, on-ground reporting, and a commitment to fact-based, impactful journalism.
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