MUMBAI: The Supreme Court has used special powers to allow a company to withdraw from insolvency proceedings after both parties, the borrower and the creditor, arrived at a mutual settlement on the loan.
The judgment assumes significance since the provisions of the new recovery law, the Insolvency and Bankruptcy Code, does not allow either of the two parties to withdraw the case once it is admitted at the National Company Law Tribunal (NCLT).
Under the new law, the adjudicating authority can however permit withdrawal of the application for insolvency proceedings on the request made by the applicant before the case is admitted.
A bench of justices Rohinton Nariman and Sanjay Kishan Kaul on July 23 exercised special powers of the Cons…
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