IDBI Trusteeship Services Limited has settled its insolvency dispute with Mahagun (India) Pvt. Ltd., paving the way for the withdrawal of corporate insolvency proceedings and potentially improving recovery prospects for the financial creditor.
The National Company Law Tribunal (NCLT), New Delhi Bench–III, in an order dated February 17, 2026, recorded the settlement between the parties and allowed the withdrawal of the insolvency petition filed by IDBI Trusteeship under the Insolvency and Bankruptcy Code (IBC). The tribunal dismissed the company petition as withdrawn after taking the settlement agreement on record.
For IDBI Trusteeship, which had initiated insolvency proceedings against the developer in 2025, the settlement marks a…