Section 12A states that a CIRP application shall not be allowed to be withdrawn unless ninety per cent of the voting share of the CoC approves. Such a high threshold can be explained by reasoning that all financial creditors must put their heads together for an omnibus settlement which involves all creditors.
The Supreme Court while upholding the constitutionality of Section 12A and the requirement of high threshold of ninety per cent voting cited the above explanation. See Swiss Ribbons Pvt Ltd v Union of India AIR 2019 SC 739. The Supreme Court added that ninety per cent means substantially all financial creditors must approve the withdrawal or settlement.