Withdrawal of admitted insolvency proceedings requires strict compliance with the statutory mechanism under the Insolvency and Bankruptcy Code.

An admitted Section 7 application under the Insolvency and Bankruptcy Code, 2016 can be withdrawn only in compliance with Section 12A. The Court found no basis to interfere with the order admitting the insolvency proceedings, especially where that admission had already been affirmed by the appellate tribunal. Withdrawal could not be permitted outside the statutory mechanism, so the request for interference failed.

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Issues: Whether an application admitted under Section 7 of the Insolvency and Bankruptcy Code, 2016 could be withdrawn otherwise than in accordance with Section 12A of the Insolvency and Bankruptcy Code, 2016, and whether interference was warranted with the order admitting insolvency proceedings.

Analysis: Once an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is admitted, withdrawal is permissible only upon compliance with Section 12A of the Insolvency and Bankruptcy Code, 2016. In the present case, the order of admission had been affirmed by the National Company Law Appellate Tribunal, and the Court found no basis to interfere with that view.

Conclusion: The request for interference failed, as withdrawal of the admitted insolvency application could not be permitted without compliance with Section 12A of the Insolvency and Bankruptcy Code, 2016.

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