SC reiterates Legal Framework for Withdrawal and Settlement of Claims in CIRP while adjudging Byju’s matters

The Supreme Court of India reiterated the legal framework for the withdrawal and settlement of claims in the Corporate Insolvency Resolution Process (CIRP) while adjudicating matters related to Byju’s. The court emphasized that any application for withdrawal of CIRP must be moved through the Interim Resolution Professional (IRP) and placed before the National Company Law Tribunal (NCLT) for approval. The ruling came in response to a dispute over the settlement of claims in Byju’s insolvency proceedings. The court’s decision reinforces the procedural requirements for withdrawing CIRP and ensures that all parties are heard before a settlement is approved. This ruling provides clarity on the process for withdrawing CIRP and supports the integrity of the insolvency resolution framework.