Section 12A withdrawal requires Committee of Creditors consent once the creditor committee is constituted.

Withdrawal of a corporate insolvency resolution process application under Section 12A required Committee of Creditors consent once the Committee had been constituted. Although the matter had been settled after commencement of the insolvency process, the withdrawal request could not be entertained because the Committee of Creditors was already in place and one financial creditor had dissented. The request was therefore kept pending and could be reconsidered only after obtaining the statutory consent required for withdrawal.

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Issues: Whether an application for withdrawal under Section 12A of the Insolvency and Bankruptcy Code could be considered after constitution of the Committee of Creditors without the requisite consent.

Analysis: The matter had been settled after commencement of the corporate insolvency resolution process, but before constitution of the Committee of Creditors. By the time the application came up, the Committee of Creditors had been formed and one financial creditor had dissented to withdrawal. In that situation, statutory consent of the Committee of Creditors was necessary before the withdrawal request could be entertained.

Outcome: The application was not considered at that stage and was directed to be taken up again after obtaining the consent required under the statute.

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