Independent Sugar Corporation Ltd. Vs Girish Sriram Juneja & Ors. (Supreme Court of India)
Supreme Court held that for a Resolution Plan containing a combination should be examined by Committee of Creditors [CoC] only after prior approval from Competition Commission of India [CCI]. Thus, resolution plan approved by CoC without requisite CCI approval not sustained.
Facts- Appellant – Independent Sugar Corporation Ltd. submitted their Resolution Plan for HNGIL – the Corporate Debtor/Target Company in India. After the CIRP was initiated against HNGIL by DBS Bank [Financial Creditor] u/s. 7 of the IBC, the Adjudicating Authority i.e., National Company Law Tribunal (Kolkata Bench), admitted the matter on 21.10.2021. An Expression of Interest was floated on 25.03.2022, by the Resolution Professional as per Form G under Regulation 36(A)(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Within the EOI, Clauses 3.3 & 4.1.1(k) prescribed a mandatory requirement of approval from the Competition Commission of India prior to the approval of the Resolution Plan, by the Committee of Creditors.
On 27.09.2022, AGI Greenpac submitted an application with the CCI under Form I under Regulation 5(ii) of the Competition Commission of India (Procedure in Regard to Transaction of Business relating to Combination) Regulations 2011 intimating that it proposed to enter into a combination with HNGIL, by acquiring 100% of HNGIL’s shareholding and business.
