The National Company Law Tribunal at Chennai has recently reaffirmed that a corporate insolvency resolution process (CIRP) may be withdrawn after admission but before the Committee of Creditors (CoC) is formed, while allowing the withdrawal of insolvency proceedings against Vees Properties Limited.
The tribunal relied on the Supreme Court’s ruling in Glas Trust Company LLC v. BYJU Raveendran, which held that withdrawal may be permitted after admission but before constitution of the CoC, invoking its inherent powers under the NCLT Rules, 2016.
A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam observed,
“As per law, NCLT can consider withdrawal of CIRP Application, before formation of CoC, after…