CIRP withdrawal application u/s 12A of IBC cannot be kept pending for constitution of CoC, CIRP Regulation 30A provides a complete mechanism for withdrawal applications being entertained before constitution of CoC and no requirement to hear any other concerned parties except OC/FC, CD & IRP – Abhishek Singh Vs. Huhtamaki PPL Ltd. & Anr. – Supreme Court

Hon’ble Supreme Court clarified various issues on settlement CIRP withdrawal under IBC such as (i) Settlement prior to the constitution of CoC and NCLT Rule 11 (ii) Alternative Remedy (iii) Violation of the Moratorium u/s 14 of IBC as the transactions to be made in the accounts of the CD for settlement (iv) Claims of other creditors (v) Section 12A of IBC and Regulation 30A of CIRP Regulations, 2016 (vi) Power under Rule 11 would be exercised for settlement after hearing all concerned parties? and (vii) Cost/Fee/Expenses of IRP/RP in case of settlement before constitution of CoC.

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