Strict compliance with Section 12A withdrawal procedure requires the original applicant to file Form FA under prescribed rules.

Withdrawal of a corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code is valid only if made by the original applicant in the manner prescribed by Regulation 30A and supported by the required creditor approval. A Form FA filed by a person other than the applicant who initiated the Section 9 proceeding is not a lawful basis for withdrawal. Where the committee record also shows objection to withdrawal, the defect is material and the withdrawal cannot stand. The stated principle is that the statutory procedure for withdrawal must be strictly followed by the initiating applicant.

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Issues: Whether withdrawal of the corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code, 2016 was valid when Form FA was not signed or submitted by the applicant who had initiated the insolvency proceeding.

Analysis: Section 12A permits withdrawal of an admitted application only on an application made by the applicant with approval of ninety per cent voting share of the committee of creditors. Regulation 30A prescribes the manner in which such withdrawal is to be sought, and the term "applicant" refers to the person who filed the original application under Sections 7, 9 or 10. On the facts, the minutes of the committee meeting showed that the operational creditor had objected to the withdrawal, and Form FA had been submitted by the financial creditor rather than by the applicant who initiated the Section 9 proceeding. The earlier authorities relied upon by the respondents were distinguished on their facts, and the defect in the present withdrawal application was treated as material.

Conclusion: Withdrawal of the corporate insolvency resolution process was not in accordance with law, and the approval of withdrawal was set aside.

Final Conclusion: The insolvency proceeding and the connected applications were revived and restored for further action before the Adjudicating Authority.

Ratio Decidendi: A withdrawal under Section 12A of the Insolvency and Bankruptcy Code, 2016 must be initiated through a valid application by the original applicant in the manner prescribed by Regulation 30A, and a Form FA not made by that applicant is not a lawful basis for withdrawal.

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