Sections 58-I explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The last three sections of the new Chapter IV-A complete the creditor-initiated insolvency resolution process. Section 58-I allows the process to be closed by withdrawing the public announcement, on the approval of ninety per cent. of the voting share of the committee of creditors. Section 58J provides for approval of a resolution plan. Section 58K applies a list of other sections and chapters. All three are inserted by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026). They are not in the IBBI consolidated text of the Code amended up to 12 August 2021, and this article explains them from the Amendment Act. The Amendment Act prints the ninth section of the Chapter as "58-I", with a hyphen, and this article follows the printing.
The Adjudicating Authority may allow withdrawal of the public announcement and close the process on an application by the resolution professional with approval of ninety per cent. voting share, but not before the committee is constituted and not after the first invitation for a plan; it must act within fourteen days. A plan approved by not less than sixty-six per cent. goes to the Adjudicating Authority with the section 58E report, and section 31 applies. Section 58K applies named sections and chapters with changes of reference.
Section 58-I(1): withdrawal and closure
"Subject to sub-section (2), the Adjudicating Authority may allow the withdrawal of the public announcement made under sub-section (4) of section 58B and close the creditor-initiated insolvency resolution process on an application made by the resolution professional with the approval of ninety per cent. voting share of the committee of creditors, in such manner as may be specified."
| Element | Words |
|---|---|
| Who applies | the resolution professional |
| Approval | "ninety per cent. voting share of the committee of creditors" |
| What the Adjudicating Authority may allow | withdrawal of the public announcement under section 58B(4) and closure of the process |
| Manner | "as may be specified" |
The word is "may", so the Adjudicating Authority is not bound to allow withdrawal. The process is closed by an order under this sub-section; the creditor-initiated insolvency resolution process period ends, as the Explanation at the end of section 58B says, on the date of an order under section 58H(1), section 58-I(1) or section 58J read with section 31.
Section 58-I(2): when withdrawal is not allowed
"Notwithstanding anything contained in any law for the time being in force, the public announcement made under sub-section (4) of section 58B shall not be withdrawn––
- (a) before the constitution of the committee of creditors; and
- (b) after the first invitation for submission of a resolution plan has been issued by the resolution professional."
So there is a window: after the committee is constituted and before the first invitation for a plan goes out. The two bars are joined by "and", as printed. The window is the only time withdrawal can be considered.
Section 58-I(3): fourteen days
"The Adjudicating Authority shall pass an order under sub-section (1), within a period of fourteen days from the date of receipt of the application." The proviso: "if the Adjudicating Authority has not passed an order within such period, it shall record the reasons for such delay in writing."
Creditors or a corporate debtor weighing a withdrawal can take legal consultation advice on whether the window is open and what approval is needed.
Section 58J: approval of the resolution plan
Section 58J(1): "Where the committee of creditors, by a vote of not less than sixty-six per cent. of the voting share, approves the resolution plan in accordance with the provisions of section 30, the resolution professional shall submit such approved resolution plan to the Adjudicating Authority, along with a report referred to in clause (c) of sub-section (1) of section 58E." The report is the one that confirms that the conduct of the process was in accordance with the procedural requirements and that the plan complies with sections 29A and 30; see our article on sections 58E and 58F.
Section 58J(2): "On receipt of the resolution plan, the Adjudicating Authority, shall, pass an order in accordance with the provisions of section 31, which shall, mutatis mutandis apply, to the proceedings under this Chapter." Section 31 is the section under which the Adjudicating Authority approves or rejects a plan. It is amended by section 19 of the Amendment Act, 2026 (a thirty-day period, a notice proviso, protection of licences and the extinguishment of earlier claims); see our post on section 31 and the article on sections 54L and 54M, which sets out the new sub-sections (5) and (6). If the plan is rejected under section 31(2), section 58H(1)(c) leads to conversion; see the article on section 58H.
Section 58K(1): other provisions that apply
"Save as provided in this Chapter, the provisions of sections 21, 24, 25A, 26, 27, 28, 28A, 29, 32, 32A, 43 to 51, and the provisions of Chapters VI and VII of this Part shall, mutatis mutandis apply, to the creditor-initiated insolvency resolution process, subject to the modifications that the references to——"
| Clause | Reference in the borrowed provision | Read as |
|---|---|---|
| (a) | "corporate insolvency resolution process" | "creditor-initiated insolvency resolution process" |
| (b) | "insolvency commencement date" | "creditor-initiated insolvency commencement date" |
| (c) | "insolvency resolution process period" | "creditor-initiated insolvency resolution process period" |
| (d) | "period starting from" is read as "period of", and "initiation date and ending on the insolvency commencement date" as "creditor-initiated insolvency commencement date" | under sections 43, 46 and 50 |
The borrowed provisions are the committee of creditors in section 21 (see section 21), the meetings in section 24, the authorised representative in section 25A, the avoidance application rules in sections 26 and 27, prior approval in section 28, the guarantor provision in section 28A (see the post on section 28A), the information memorandum in section 29 and the protections in sections 32 and 32A. Sections 43 to 51 on avoidable transactions, and Chapters VI and VII of Part II (the Adjudicating Authority, and offences and penalties) also apply. Section 58K(1)(d) is the counterpart of section 58H(3)(c) and matches the look-back words of sections 43, 46 and 50 as amended.
The list in section 58K(1) does not name section 29A; section 58E(1)(c) separately provides that sections 29A and 30 apply mutatis mutandis for the plan report. Section 58K(2): "The creditor-initiated insolvency resolution process of a corporate person under this Chapter shall meet such conditions and procedural requirements as may be specified."
Example
Pearl Chemicals Pvt Ltd is in a creditor-initiated process. The committee of creditors is constituted, no invitation for a plan has been issued, and the lenders reach an out-of-court settlement. The resolution professional applies with the approval of ninety per cent. voting share. The Adjudicating Authority has fourteen days to pass an order, or it records the reasons for delay. Had the first invitation for a plan already gone out, section 58-I(2)(b) would have barred withdrawal. If instead a plan is approved by sixty-six per cent., the resolution professional submits it with the report, and section 31 applies. The names are invented.
Commencement and sources
The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether these sections have been notified. The details of the process, including the manner, conditions and procedural requirements, are left to rules and regulations that are not in the texts consulted.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help with withdrawal or plan approval?
The window for withdrawal is narrow, the vote is high, and the plan route brings in section 31. Our team can help creditors, debtors and professionals work through the steps through legal consultation.
Key takeaways
- Section 58-I: withdrawal of the public announcement and closure of the process, on the resolution professional's application with ninety per cent. voting share; not before the committee is constituted and not after the first invitation for a plan.
- The Adjudicating Authority must pass the order within fourteen days or record reasons for delay.
- Section 58J: a plan approved by not less than sixty-six per cent. of the voting share goes to the Adjudicating Authority with the section 58E report, and section 31 applies.
- Section 58K applies sections 21, 24, 25A, 26, 27, 28, 28A, 29, 32, 32A, 43 to 51 and Chapters VI and VII, with changes of reference.
- Section 58K(2) leaves further conditions and procedural requirements to what is specified.
Read next
- Section 58H: conversion into a corporate insolvency resolution process
- Section 59A: group insolvency
- Withdrawal under section 12A and the 2026 change
- The creditor-initiated insolvency resolution process under Chapter IV-A
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.