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The Tax Publishers Insolvency and Bankruptcy Code, 2016--CIRP Withdrawal of Application for Initiation of CIRP Pragya Lalwani The learned author, in this write-up, seeks to explain when an application for initiation of CIRP can be withdrawn and what is the manner of withdrawal of such application. 1. Introduction A financial creditor, or an operational creditor or even a corporate applicant can make an application for initiation of corporate insolvency resolution process (CIRP) against the defaulting corporate debtor. Such application of insolvency may be withdrawn by the applicant before its admission by the Adjudicating Authority, i.e., NCLT. However, by virtue of the Supreme Court's judgment in Ultra Foods case, the Insolvency and Bankruptcy Code, 2016 and regulations with respect to it have been amended allowing the withdrawal of CIRP application even after its admission. Such withdrawal can be made with Committee's approval, wherever required and at discretion of the NCLT's order. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Insolvency and Bankruptcy Code, 2016--CIRP

Withdrawal of Application for Initiation of CIRP

Pragya Lalwani

The learned author, in this write-up, seeks to explain when an application for initiation of CIRP can be withdrawn and what is the manner of withdrawal of such application.

1. Introduction

A financial creditor, or an operational creditor or even a corporate applicant can make an application for initiation of corporate insolvency resolution process (CIRP) against the defaulting corporate debtor. Such application of insolvency may be withdrawn by the applicant before its admission by the Adjudicating Authority, i.e., NCLT. However, by virtue of the Supreme Court's judgment in Ultra Foods case, the Insolvency and Bankruptcy Code, 2016 and regulations with respect to it have been amended allowing the withdrawal of CIRP application even after its admission. Such withdrawal can be made with Committee's approval, wherever required and at discretion of the NCLT's order.