Soon there may be a provision to withdraw the application for initiating Corporate Insolvency Resolution Process (CIRP), post admission. This is part of the proposed changes that the government is contemplating for the Insolvency and Bankruptcy Code (IBC) through the Ordinance route.
The Union Cabinet will most likely consider an Ordinance for this purpose at its meeting slated for Wednesday, official sources said.
The amendment to IBC will, however, stipulate that an application for initiating CIRP could be withdrawn only if the Committee of Creditors (COC) is to allow this action with a vote share of 90 per cent.
Currently, there is no provision for withdrawal of an application under insolvency process once it has been admitted. If wit…
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