Settlement in CIRP proceedings leads to liberty to seek withdrawal under Section 12A of the Insolvency and Bankruptcy Code.

The appeal was disposed of after the parties recorded a settlement. The financial creditor was granted liberty to move the Adjudicating Authority for withdrawal of the corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code, 2016. The operative effect was that the insolvency proceedings could be taken forward for withdrawal in accordance with the settlement, subject to the Adjudicating Authority's consideration of the withdrawal application.

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Outcome: The appeal was disposed of after recording the settlement between the parties, with liberty to the financial creditor to move an application for withdrawal of the corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code, 2016 before the Adjudicating Authority.

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