The Insolvency and Bankruptcy Board of India (IBBI) proposes to make the legal regime around withdrawal of resolution applications under the Insolvency and Bankruptcy Code (IBC) more practical. This, in turn, will give the original promoters a wider opportunity to seek resolution outside the IBC process and thereby gain back control of their companies.
Plans are afoot to change the norms around withdrawal of resolution applications under Section 12A of the IBC to the effect that application for withdrawal may be allowed in exceptional cases even after invitation of expression of interest. The insolvency regulator proposes to make a change to this effect in the Corporate Insolvency Resolution Process (CIRP).
Currently, no application for …
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