The National Company Law Tribunal (NCLT) in Bengaluru rejected an insolvency petition filed by Indian Bank against Mantri Developers, a well-known real estate company that manages several residential projects and malls in Bangalore, on Tuesday.

Indian Bank had filed the plea against Mantri Developers in 2022, citing a default of ₹153 crores. The order was passed by a bench comprising Judicial Member K Biswal and Technical Member Manoj Kumar Dubey.

In 2023, Mantri Developers was admitted to the Corporate Insolvency Resolution Process (CIRP) following a petition by India Bulls, which claimed a default exceeding ₹500 crores. At that time, the NCLT had disposed of the bank's plea, allowing Indian Bank to intervene in the CIRP process initiated by India Bulls. However, Mantri Developers later reached a settlement with India Bulls, leading to the withdrawal of the petition.

"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.

Following the settlement with India Bulls, Indian Bank moved the NCLT again in an attempt to revive its insolvency petition, which was dismissed today.

Mantri Developers, founded in 1999 by Sushil Mantri, is a leading real estate company headquartered in Bengaluru, with a presence in major cities like Bengaluru, Chennai, Pune, and Hyderabad. The company claims to have completed 23 projects spanning 10 million square feet. Notable developments include Mantri Square Mall and Mantri Pinnacle, touted as South India's tallest residential tower.

However, in recent years, Mantri Developers has struggled financially, resulting in delays in several key projects. These issues have affected buyers and led to legal disputes and protests. The company's financial troubles are linked to substantial borrowings, with ₹1,000 crores overdue, alongside accusations of misusing funds allocated for project development.

These challenges have caused delays and cancellations, prompting legal action from homebuyers who have not received their properties. Consumer courts have ruled against the company for unfair trade practices, including contract terminations without refunds. For example, the Bangalore Urban Consumer Commission recently ordered Mantri Developers to compensate a buyer for failing to deliver a promised apartment.

Indian Bank was represented by Advocate HR Katti, while Mantri Developers was represented by Advocate Anish Acharya.