SC sets aside AGI Greenpac’s resolution plan for debt-ridden Hindustan National Glass
Supreme Court on Wednesday set aside leading container glass manufacturer AGI Greenpac Ltd’s resolution plan for the acquisition of debt-ridden Hindustan National Glass as the former had failed to secure prior approval from the Competition Commission of India.
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It held that the CCI’s prior approval is mandatory before the committee of creditors (CoC) gives it nod to any resolution plan.
Justices Hrishikesh Roy and Sudhanshu Dhulia termed the AGI Greenpac’s resolution plan is “unsustainable” as it did not have a prior approval from the CCI, as mandated under the proviso to Section 31(4) of the IBC. “Consequently, the approval granted by the CoC to the resolution plan on October 28, 2022 without the requisite CCI approval, cannot be sustained and is hereby set aside and quashed,” it ordered.
On October 28, 2022, the CoC had approved AGI Greenpac's plan with 98% favourable votes despite no prior approval from the CCI.
“Any action taken pursuant to the resolution plan shall stand nullified, and the rights of all stakeholders shall be restored as per status quo ante, prior to the approval of the resolution plan by the CoC on October 28, 2022,” the judgement stated, asking the CoC to reconsider the AGI Greenpac’s resolution plan and any other resolution plans which had the requisite CCI approval as on the date
