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Informative

RP can withdraw Application u/s 12A of IBC before it is heard or allowed: NCLAT

Update / Judgement Date

27 Dec 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

The NCLAT ruled that a resolution professional (RP) can withdraw an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) before it is heard or allowed. The decision reaffirms the discretion of the RP to withdraw the application at any stage before the approval of the resolution plan by the adjudicating authority. The ruling aims to ensure that RPs have the flexibility to make decisions in the best interest of creditors and stakeholders during the resolution process, providing a more pragmatic approach in the IBC framework.