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Informist, Thursday, Nov. 6, 2025

 

NEW DELHI – The National Company Law Appellate Tribunal Thursday set aside an order by the Delhi bench of the National Company Law Tribunal to start insolvency proceedings against Mahagun (India) Pvt. Ltd. for dues of INR 2.61 billion to IDBI Trusteeship Services Ltd. The appellate tribunal asked the NCLT to decide IDBI Trusteeship Services' insolvency plea afresh.

 

The appellate tribunal also asked another petitioner, Aditya Birla Capital Ltd., to file a fresh insolvency petition against Mahagun (India) in the Delhi tribunal. It directed the homebuyers of Mahagun's project, who sought insolvency proceedings against only specific projects and not the company, to file their application before the Delhi tribunal. A detailed order is awaited.

 

In 2020, Mahagun had sought financial assistance from Asia Real Estate II India Opportunity Trust, the debenture holder, through the 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 the non-convertible debentures.

 

IDBI Trusteeship had extended secured debt 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 debt, IDBI Trusteeship moved the tribunal. In August, the Delhi bench admitted Mahagun to insolvency and appointed Manoj Kumar Babulal Agarwal as the interim resolution professional. Challenging the tribunal's order, Amit Jain, the suspended director of Mahagun, moved the appellate tribunal.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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