Summary
- The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduces a revamped Section 12A, imposing stricter conditions for withdrawing applications during the Corporate Insolvency Resolution Process (CIRP).
- Withdrawals are now only permitted after the Committee of Creditors (CoC) is formed and before the first invitation for resolution plans is issued, requiring 90% CoC approval.
- The National Company Law Tribunal (NCLT) must decide on withdrawal applications within 30 days, enhancing efficiency in insolvency proceedings.
- This amendment aims to eliminate previous flexibilities, ensuring a structured and time-bound withdrawal process that reinforces creditor control in CIRP.
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