Judicial Shift: CCI Approval First In Distressed M&A Deals

INTRODUCTION

In the realm of failing business acquisition, the process of obtaining approvals from relevant regulatory bodies play a crucial role in maintaining fair competition, ensuring compliance with the legal framework and safeguarding the interests of various stakeholders. One of the most important aspects of such regulatory procedures is the approval of mergers and acquisitions ("M&A"), which involves the scrutiny by the Competition Commission of India ("CCI") and the Committee of Creditors ("CoC"). In a recent judicial development, it has been established that CCI approval is mandatory before CoC approval for specific corporate transactions, particularly those involving distressed companies under the Insolvency and Bankruptcy Code, 2016 ("IBC").