# NCLAT gives NCLT 15 days to decide Epic Yarns insolvency withdrawal 2026-08-25T00:44:50+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The National Company Law Appellate Tribunal (NCLAT) has directed the Mumbai NCLT to decide within 15 days on Epic Yarns Pvt Ltd's application to withdraw insolvency proceedings, after the company settled its Rs 3.07 crore debt with operational creditor Uma Exports Ltd. The settlement was finalised on August 6, 2026, while the NCLT had already admitted the company into insolvency on July 23. The NCLAT noted the settlement happened after the amended Section 12A of the IBC came into force on May 26, which bars withdrawal before the Committee of Creditors is constituted and requires 90% voting approval for any withdrawal. The Interim Resolution Professional has so far received only one claim from the EPFO for about Rs 1.29 crore. The NCLT must now dispose of the withdrawal application within 15 days of receiving it. ## Indian Opinion Analysis Section 12A of the IBC was introduced in 2018 to allow withdrawal of insolvency proceedings after admission if creditors agree. The 2026 amendment made withdrawal harder by requiring 90% approval from the Committee of Creditors even when a settlement exists, a threshold smaller companies often struggle to meet. EPFO claims rank above most creditors under the IBC waterfall, so Epic Yarns may need to settle this Rs 1.29 crore liability alongside the original Rs 3.07 crore corporate debt to fully exit CIRP. The NCLAT's 15-day deadline now puts pressure on the Mumbai NCLT to apply the amended rules swiftly, testing whether genuine pre-admission settlements can still be honoured post-amendment. The next signal is whether the NCLT accepts the Section 12A application or insists on formal CoC voting first. ## Coverage - legal.economictimes.indiatimes.com Straight reporting of tribunal order with procedural detail, no slant. This story was synthesised by AI from the source linked above. Tags: CIRP, Epic Yarns, IBC, NCLAT, NCLT, Section 12A Canonical: https://indianopinion.org/nclat-gives-nclt-15-days-to-decide-epic-yarns-insolvency-withdrawal/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nclat-gives-nclt-15-days-to-decide-epic-yarns-insolvency-withdrawal/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/