IBC: Creditor Withdraws Insolvency Petition, Moratorium Lifted

The Tribunal approved the Financial Creditor's application for withdrawal of the insolvency petition under Section 12A of the IBC Code, 2016. The Committee of Creditors unanimously approved the withdrawal with 100% voting share, in compliance with Regulation 30A. The Tribunal, considering the provisions of Section 12A and Regulation 30A, lifted the moratorium order and closed the Corporate Insolvency Resolution Process.

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Issues involved:
1. Application for withdrawal of insolvency petition under Section 12A of IBC Code, 2016.
2. Compliance with Regulation 30A of Insolvency Resolution Process for Corporate Persons Regulations, 2016.
3. Approval of withdrawal application by Committee of Creditors with 100% voting share.
4. Tribunal's power to approve withdrawal application under Section 12A of the Code.

Analysis:
1. The Resolution Professional filed an application seeking permission to withdraw the insolvency petition under Section 12A of the IBC Code, 2016, on behalf of Axis Bank Ltd, a Financial Creditor. The application also requested condonation of a 9-day delay in filing. The petition was admitted earlier under Section 7 of the IBC Code, 2016.

2. The application detailed that the Financial Creditor submitted a Form FA for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under Regulation 30A. The Financial Creditor had accepted a settlement proposal from one of the promoters of the corporate debtor, agreeing to cover the Insolvency Resolution Process Cost incurred by the Resolution Professional.

3. The Committee of Creditors unanimously approved the withdrawal application with 100% voting share in the 3rd CoC meeting. The Resolution Professional requested the Tribunal to condone the delay and submitted the necessary documentation for withdrawal approval.

4. The Tribunal analyzed Section 12A of the Code, which allows withdrawal of applications admitted under Section 7, 9, or 10 with 90% voting share approval of the Committee of Creditors. Regulation 30A outlines the procedure for withdrawal, including submission of Form FA and approval by the CoC. The Tribunal confirmed that the CoC's 100% voting share approval aligned with the requirements.

5. By exercising powers under Section 12A of the Code read with Regulation 30A, the Tribunal approved the withdrawal application, allowing the Financial Creditor's application to be withdrawn. Consequently, the moratorium order was lifted, and the Corporate Insolvency Resolution Process was closed as per the Tribunal's decision.

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