Insolvency Application which get admitted can be withdrawn at any point during the insolvency process.
The Apex Court while hearing the matter, ruled that the parties are allowed to withdraw the application at any point of time during the insolvency process. It was stated that the Regulation 30A states that withdrawal cannot be permitted after issue of invitation for expression of interest. However, this Regulation has to be read along with the main provision of Section 12A which contains no such stipulation and thus this stipulation can only be construed as directory depending on the facts of each case.
It may be noted that with this judgement, there will be thwart to the insolvency process and will have a far reaching effect. I believe that to avoid such scenario in future, the Adjudicating Authority should come or order penalty or fine for wasting the time of Adjudicating Authority.