The National Company Law Appellate Tribunal (NCLAT) has permitted the withdrawal of insolvency proceedings against NCR-based real estate developer Mahagun (India) Pvt Ltd after the company reached a settlement with its financial creditor, IDBI Trusteeship Services Limited.

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, according to a report by The Hindustan Times.

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 The tribunal has taken the settlement on record and dismissed the company petition as withdrawn, it said.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.