NCLAT rejects plea against CCI nod to AGI Greenpac
New Delhi: The New Delhi bench of the National Company Law Appellate Tribunal (NCLAT) has dismissed a plea by Independent Sugar Corp. Ltd (INSCO) challenging the Competition Commission of India (CCI)’s approval to AGI Greenpac’s acquisition of Hindustan National Glass, India’s oldest glass manufacturer. On 15 March, the competition regulator had approved the acquisition of HNG by AGI Greenpac.
“The commission in its order has considered all relevant aspects and materials on record and has not committed any error in approving the combination in exercise of its power," a bench led by Justices Ashok Bhushan and Barun Mitra said. The NCLAT clarified that no grounds had been made out to interfere with CCI’s order. On 11 April, INSCO, a potential resolution applicant for HNG, filed an appeal before the NCLAT, alleging that the CCI was in a hurry to issue its order in favour of AGI.
In March, a two-member CCI bench had approved AGI’s bid with a caveat that it maybe modified later. In fact, INSCO told the appellate tribunal that CCI should not have granted its approval without carefully determining how the combination would affect the market, stakeholders, and the parties expressing concerns over the CCI’s decisions. In September, AGI placed the winning bid for acquiring HNG under the process run by its resolution professional and the committee of creditors led by State Bank of India.
AGI Greenpac’s resolution plan was approved by 98% of the CoC in October. “AGI Greenpac expects that with the NCLAT order today, the approval of its resolution plan at NCLT Kolkata should now accelerate," the company said in a statement on Monday. Post-acquisition, AGI plans to invest significantly in HNG for refurbishing furnaces and to maintain
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