Decoding the Code-Main

Section 12A is inserted by second amendment in IBC on recommendation by  Insolvency Law Committee Report submitted in Mar, 2018 to provide facility to withdraw application made under section 7, 9 or 10 on settlement even if CIRP has been initiated. Before the Section 12A, there was no provision in the Code or the regulations in relation to permissibility of withdrawal post admission of a CIRP application. As discussed above, only rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016t provide facility to withdraw the application on a request by the applicant before it is admitted by the NCLT.