Corporate News
The National Company Law Tribunal has dismissed applications to withdraw a corporate insolvency resolution process against a company, citing the “in rem” nature of the proceedings and the absence of a Committee of Creditors (CoC). One financial creditor initially filed an application to withdraw the process, having reached a settlement for a portion of the debt, while a suspended director also sought similar relief. However, intervening creditors opposed the withdrawal, arguing that substantial debts remained outstanding and the company’s overall financial distress hadn't been resolved. The Tribunal, referencing a Supreme Court ruling, emphasized that Section 12A of the Insolvency and Bankruptcy Code requires 90% approval from the CoC for withdrawal, a condition unmet in this case, and that allowing the withdrawal would unfairly disadvantage other creditors and potentially trigger further litigation.