New Delhi, Oct. 3 -- The Supreme Court has held that the Adjudicating Authority (AA) under the Insolvency and Bankruptcy Code (IBC), 2016 can recall admission of a Section 9 insolvency application if it was initiated on the basis of fraudulent or collusive jurisdictional facts.

However, the Court clarified that a finding of fraud does not automatically require termination of the entire Corporate Insolvency Resolution Process (CIRP). Once admitted, insolvency proceedings acquire an in rem character and the AA must separately decide whether the CIRP should continue in the interests of the corporate debtor and its stakeholders.

A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe made the observations while dealing with proceedi...