NCLAT directs withdrawal of the insolvency against Mahagun as parties arrive at settlement

The NCLAT has allowed the withdrawal of insolvency proceedings against realty firm Mahagun after it reached a settlement with financial creditor IDBI Trusteeship under an agreement dated February 12, 2026. The appellate tribunal dismissed the insolvency petition as withdrawn and disposed of all pending applications, while granting the creditor liberty to revive the case if the company fails to comply with the settlement terms.