Abstract

The Insolvency and Bankruptcy Code, 2016 was enacted in furtherance of the India’s stance on “Ease of Doing Business Index” of the World Bank. IBC 2016 is an umbrella legislation that deals with the cases of corporate insolvency. The legislation was enacted with the objective of speedy resolution of insolvency proceedings by way of providing a unified corporate insolvency resolution process. To aid the process of speedy resolution of corporate insolvency the corporate creditor and the debtor at times are also allowed entering into a consent agreement. The creditor as well as the debtor in such scenarios enters into settlement agreement where the debtors promise to pay the debt amount to the creditor against the withdrawal of the CIRP. A CIRP application can be withdrawn u/s 12-A of the Insolvency and Bankruptcy Code 2016. However, once withdrawn cannot be revived again. CIRP once withdrawn pursuant to the settlement agreement, if debtor fails to repay the debt amount or adhere with the consent terms the code lacks any provision for the revival of the application. This article explores a scenario whether a CIRP application that was filed and subsequently withdrawn due to a consent term can be revived with the help of case laws. The authors further in the article also made certain suggestions in relation to the code.

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