NCLAT ruling paves way for Hindustan National Glass insolvency resolution

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Insolvency and Bankruptcy Code (IBC). “We do not find any ground to interfere with the impugned order dated 28 April 2023," said a bench led by chairperson Ashok Bhushan and Justice Barun Mitra. “The adjudicating authority may now proceed to consider the application filed for approval of the Resolution Plan." Independent Sugar Corp.

Ltd, among the final bidders for Hindustan National Glass, had sought setting aside of the resolution plan submitted by AGI Greenpac. However, the Kolkata NCLT had rejected the petition, following which the company challenged it before the appellate tribunal. AGI Greenpac’s plan was approved by the lenders with 98% votes in favour while Independent Sugar’s plan was approved with 88% votes.

Independent Sugar’s primary contention was that it had already received the requisite CCI approval well before AGI Greenpac did. It alleged that AGI Greenpac, even after failing to receive clearance from the competition watchdog, became eligible as the successful resolution applicant under the resolution process. Aggrieved by the decision, Independent Sugar filed an appeal before the NCLAT, alleging that the CCI was in a hurry to issue its order in favour of AGI Greenpac.

In March, a two-member CCI bench approved AGI’s bid with a caveat that it may be modified later. Independent Sugar Corp. 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.