Competition Commission Clearance In Insolvency Resolution Process In India – Do The Acquirers Have A Choice?

Article by MM Sharma, Head Competition Law & Policy Practice, Vaish Associates, Advocates, New Delhi, India

The enactment of the Insolvency and Bankruptcy Code, 2016 (IBC) in India has resulted in large corporate entities queuing up to acquire distressed companies and their assets, put on block following initiation of IBC proceedings. Acquisition of a corporate debtor under the IBC begins with the submission of a resolution plan to the Resolution Professional (RP) by the resolution applicant (acquirer/bidder), followed by the approval of such resolution plan by the Committee of Creditors (CoC) and finally by the National Company Law Tribunal (NCLT). The recent Supreme Court judgement restraining Binani Industries, the parent company of Binani Cement to withdraw from the CIRP after acceptance of the bid of Dalmia Bharat Cement Ltd. has upheld and strengthened the sanctity of the CIRP under the IBC. Let us now see the role of CCI in the CIRP.