Withdrawal Application Under IBC Section 7 Allowed Before Creditor Committee Formation to Facilitate Settlements and Protect Livelihoods.

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....Seeking withdrawal of application admitted u/s 7 of IBC - Considering the number of people dependant on the Corporate Debtor for their survival and livelihood, there is no reason why the applicant for the CIRP, should not be allowed to withdraw its application once its disputes have been settled - the settlement cannot be stifled before the constitution of the Committee of Creditors in anticipation of claims against the Corporate Debtor from third persons. The withdrawal of an application for CIRP by the applicant would not prevent any other financial creditor from taking recourse to a proceeding under IBC. The urgency to abide by the timelines for completion of the resolution process is not a reason to stifle the settlement. - SC....