The law of insolvency and bankruptcy is in its evolving phase,
learning from the past slipups and longing for its improvement for
the future. The law of withdrawal of the process initiated under
the Insolvency & Bankruptcy Code 2016 ("Code") is
also spreading its wings along with the overall expansion of the
Code.
Recently, the legislature had inserted Section 12A and also
added a Regulation 30A to the Code providing for such withdrawal.
The said provisions deal with the situation of a settlement between
the creditors and the promoters of the Corporate Debtor, in respect
of which the insolvency process has been initiated, and provide
that the application for withdrawal may be filed only before the
invitation of expression of interest.
