Mere Allegation Of Coercion, Threat, Or Fraud Without Prima Facie Proof Cannot Invalidate Withdrawal Of CIRP U/S 12A Of IBC: NCLAT Chennai

The NCLAT (National Company Law Appellate Tribunal), Chennai, has ruled that "mere allegation of coercion, threat, or fraud without prima facie proof cannot invalidate withdrawal under Section 12A of IBC (Insolvency and Bankruptcy Code)." Section 12A allows for the withdrawal of a Corporate Insolvency Resolution Process (CIRP) application. The tribunal emphasized that once a withdrawal application is filed with the requisite approvals, it cannot be set aside merely on unsubstantiated claims of duress. Concrete evidence is required to prove that the consent for withdrawal was not genuinely given, ensuring the finality of CIRP withdrawals.