NCLT admits IDBI Trusteeship's insolvency plea vs Mahagun over unpaid dues
This story was originally published at 19:01 IST on 7 August 2025
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NEW DELHI – The Delhi bench of the National Company Law Tribunal has admitted a petition by IDBI Trusteeship Services Ltd. to start insolvency proceedings against Mahagun (India) Pvt. Ltd. for an unpaid amount of INR 2.61 billion. The tribunal has appointed Manoj Kumar Babulal Agarwal as the interim resolution professional of Mahagun to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.
"We are of the view that the applicant (IDBI Trusteeship) has clearly established the case of debt and admitted default by the corporate debtor (Mahagun). Therefore, we admit this application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 and initiate CIRP (corporate insolvency resolution process) against the corporate debtor (Mahagun)," said the tribunal. It also declared a moratorium against Mahagun in terms of Section 14 of the 2016 Code.
In 2020, Mahagun had sought financial assistance from Asia Real Estate II India Opportunity Trust, the debenture holder, by issuance of secured, senior, unrated, unlisted, redeemable, transferable, non-convertible debentures of INR 3.55 billion on a private placement basis. IDBI Trusteeship gave its consent to act as a debenture trustee for Asia Real Estate. Consequently, all parties jointly executed a debenture trust deed to capture the terms and conditions of non-convertible debentures.
IDBI Trusteeship had extended a secured debt and facility to Mahagun by subscribing to the non-convertible debentures and disbursed INR 3.55 billion to the corporate debtor. However, in 2023, Mahagun defaulted on the scheduled redemption payment, and after repeated failure to pay its debts, IDBI Trusteeship moved the tribunal. End
Reported by Surya Tripathi
Edited by Tanima Banerjee
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