Hon’ble Supreme Court in GLAS Trust Company LLC vs BYJU Raveendran & Ors. (Civil Appeal No. 9986 of 2024) sets Guidelines for Withdrawal and Settlement in Insolvency Cases

In this landmark decision, Hon’ble Supreme Court covers following issues:

1. Nature of the proceedings after admission of the application: proceeding in personam or in rem.
2. Legal framework for withdrawal and settlement of claims.
3. Four stages of withdrawal of Insolvency cases: A procedure prescribed under the existing framework.
4. Comprehensive framework to deal with withdrawal and settlement: Rule 11 of the NCLT Rules, or Rule 11 of the NCLAT Rules or even the power under Article 142 no longer arises.
5. Withdrawal application u/s 12A through IRP only, NCLT conducts an adjudicatory exercise and the procedure is not a mere technicality.
6. Inherent Powers under Rule 11 of NCLT/ NCLAT Rules, 2016.
7. Meaning of the phrase “any person aggrieved” under Section 61 and Section 62 of IBC.

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