An Operational Creditor of a Company has made an application to National Company Law Tribunal (NCLT) for initiating Corporate Insolvency Resolution Process (CIRP) for non-payment his dues for long time. The NCLT ordered

Section 12A of the Insolvency and Bankruptcy Code, 2012 provides that 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. Section 12 A of IBC read with Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 specifically deals with withdrawal of CIRP after admission. Section 12A provides that CIRP can be withdrawn after admission, if the same is approved by ninety per cent voting share of the committee of creditors. Withdrawal may be allowed even after issuance of invitation for Expression of Interest. Where Committee of Creditors (CoC) is not constituted, a party can approach NCLT for withdrawal of an application on settlement and where CoC is constituted, 90% of the voting share of the CoC agree for withdrawal. The answer would not differ if the application is made by the financial creditor and subsequently corporate debtor settles its dues.