PQ Private Limited is under Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated based on an application filed by Operational Creditor of PQ Private Limited. The Resolution professional appointed by Nat

As per section 12A of Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority may allow the withdrawal of application admitted under section 7 or section 9 or section 10, on an application made by the applicant with the approval of ninety per cent voting share of the committee of creditors, in such manner as may be specified. Regulation 30A(1)(b) of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016 also provides that application for withdrawal under section 12A of Code may be made to the Adjudicating Authority after the constitution of the committee, by the applicant through the resolution professional, subject to the applicant stating the reasons justifying withdrawal, if the application for withdrawal made after issue for expression of interest under regulation 36A. In the matter of ' Brilliant Alloys Pvt. Ltd. vs. Mr. S. Rajagopal & Ors. ', Hon'ble Supreme Court held that Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016 has to be read subject to Section 12A of the Insolvency and Bankruptcy code, 2016 which does not impose the condition that withdrawal application has to be filed before the invitation of expression of interest. Thus, the Apex Court upheld withdrawal of CIRP even after the Resolution Professional issued invitation for expression of interest from resolution applicants to submit resolution plans under Regulation 36A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. A similar stand was taken by Apex Court in the matter of Abhishek Singh vs Huhtamaki PPL Ltd. Hence, keeping in light the provisions of Insolvency and Bankruptcy Code and Regulations, the contentions of other operational creditor are not tenable.