CoC can withdraw insolvency process if 90% votes for such a move: IBC panel

IBC review panel recommends allowing withdrawal of cases if creditors approve

Ambiguity surrounding out-of-court settlements of insolvency cases, such as the one for Binani Cement, might soon be a thing of the past. A high-level panel reviewing the Insolvency and Bankruptcy Code (IBC) has recommended that the committee of creditors (CoC) concerned should be give the powers to make such a move if 90 per cent of its members are in favour of it, even if the case has been sent to the National Company Law Tribunal (NCLT).

“The review panel unanimously agreed that relevant rules could be amended so that insolvency cases can be withdrawn even after they are admitted