A financial creditor's application under Section 7 has been ADMITTED and the CIRP has commenced; the parties now reach a settlement and wish to withdraw the application. Under Section 12A of the IBC, 2016, the withdrawal may be permitted only with the approval of:

Section 12A of the IBC permits the WITHDRAWAL of an application filed under Section 7, 9 or 10, with the prior approval of the Adjudicating Authority, where the Committee of Creditors approves the withdrawal by a vote of NOT LESS THAN NINETY PER CENT of its voting share (the 90% threshold) in the manner set out by the Code and the IBBI rules. Where the CoC has not been constituted, the applicant may withdraw at the earlier stage with the NCLT's permission. Once the CoC is constituted in the CIRP, the 90%-CoC-approval condition controls the settlement/withdrawal. This makes creditor consensus the guardian of post-commencement withdrawal.