Clarification On CCI Approval Preceding CoC's Decision: Supreme Court's Ruling

Introduction

On 29 January 2025, the three judge bench of the Hon'ble Supreme Court ("the Court") gave a landmark judgement in the matter of Independent Sugar Corporation Limited v. Girish Sriram Juneja.

The Court held that a resolution plan which has a provision of a proposed combination shall obtain the approval of the Competition Commission of India ("CCI") before the approval of the Committee of Creditors ("CoC") under proviso of Section 31(4) if the Insolvency and Bankruptcy Code, 2016 ("IBC").

Brief Facts:

Hindustan National Glass and Industries Ltd. ("HNGIL"), the corporate debtor entered into a corporate insolvency resolution process ("CIRP"). Greenpact AGI Ltd ("AGI or Successful Applicant") and Independent Sugar Corporation Limited ("INSCO") had submitted their respective resolution plan with the resolution professional.