NCLT dismisses Indian Bank's insolvency plea against Mantri Developers

The National Company Law Tribunal (NCLT) at Bengaluru on Tuesday dismissed an insolvency plea filed by Indian Bank against prominent real estate company Mantri Developers which runs multiple residential projects and malls in Bangalore [Indian Bank Vs Mantri Developers].Indian Bank had moved the plea against Mantri developers in 2022 over a default of ₹ 153 crores. A coram of Judicial Member K Biswal and Technical Member Manoj Kumar Dubey passed the order. .Mantri Developers was admitted to the Corporate Insolvency Resolution Process (CIRP) in 2023 on a petition by India Bulls alleging a default of over ₹500 crores. Owing to this, NCLT had earlier disposed of a plea by the bank, by allowing Indian Bank to intervene in the CIRP process initiated by India Bulls. However, Mantri Developers subsequently reached a settlement with India Bulls and ultimately got the plea withdrawn. "As a logical corollary, the main CP(IB) No.94/BB/2022 on the file of the ‘Adjudicating Authority’/‘National Company law Tribunal’ Bengaluru Bench is ‘Dismissed'", the National Company Law Appellate Tribunal (NCLAT) had held in the matter. This led Indian Bank to move the NCLT again to revive its insolvency plea, which was dismissed today. .Mantri Developers, established in 1999 by Sushil Mantri, is a prominent real estate company headquartered in Bengaluru. It has presence across major cities like Bengaluru, Chennai, Pune, and Hyderabad. The company claims to have completed a portfolio of 23 completed projects covering 10 million square feet. It has built prominent projects such as Mantri Square Mall and Mantri Pinnacle, which is claimed to be South India's tallest residential tower..Mantri Developers has faced financial difficulties in recent years, leading to delays in some of its flagship projects. These setbacks have impacted buyers and led to legal proceedings and customer protests.The company’s financial issues stem from significant borrowings, with ₹1,000 crores classified as overdue, and allegations of misusing funds intended for project development. This has resulted in delays and cancellations, sparking legal action from homebuyers over non-delivery of properties. Consumer courts have ruled against the company, citing unfair trade practices, including terminating agreements without refunds. For instance, the Bangalore Urban Consumer Commission recently directed Mantri Developers to compensate a buyer for failing to deliver a promised apartment..Indian Bank was represented by Advocate HR Katti and Mantri Developers was represented by Advocate Anish Acharya.