ABHISHEK SINGH versus HUHTAMAKI PPL LTD. & ANR(Supreme Court of India- CIVIL APPEAL NO(s). 2241 OF 2023)
A creditor could withdraw the application under IBC even after commencement of CIRP when the Committee of Creditors is not constituted.
SC in above decision held that:-
“Section 12A of IBC permits withdrawal of applications admitted under sections 7, 9 and 10 of IBC. It permits withdrawal of such applications with approval of 90 percent voting share of CoC in such manner as may be specified. The role of CoC and 90 percent of its voting share approving the said withdrawal would come into play only when CoC has been constituted. Section 12A did not specifically mention withdrawal of such applications where CoC had not been constituted but at the same time it does not debar entertaining applications for withdrawal even before the constitution of CoC. Therefore, the application under section 12A for withdrawal cannot be said to be kept pending for the constitution of CoC, even where such application was filed before the constitution of CoC.”
Author of this Article:
Adv. Ravish Bhatt,
Partner, R&D Law Chambers,
Dual Qualified Lawyer Solicitor | International Tax Affiliate
Connect with Mr. Bhatt on Linkedin: https://www.linkedin.com/in/adit-ravishbhatt/
- Readers should contact their attorney to obtain advice with respect to any particular legal matter. No reader or user should act or refrain from acting on the basis of information written above without first seeking legal advice from qualified law practitioner.