In Brief
A suspended director of Manpasand Beverages Ltd challenged the NCLT's rejection of a withdrawal application for corporate insolvency proceedings under section 12A of the IBC. The company had settled a creditor's claim of ₹1.31 crore for ₹95.72 lakhs, with payment completed before the Committee of Creditors was constituted. The NCLT refused withdrawal citing other pending creditor claims and alleged moratorium violations. The Supreme Court held that section 12A and Regulation 30A of the IBBI Regulations permit withdrawal before CoC constitution. The NCLT had inherent powers to allow withdrawal based on the settlement. Other creditors' subsequent claims cannot defeat a pre-CoC withdrawal. Alleged moratorium violations are separate issues recoverable under the IBC but do not bar withdrawal itself. The appeal was allowed and the withdrawal application was permitted.
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