'Prior' CCI Approval Of Resolution Plans: A Case For Legislative Amendment

The recent judgment of the Supreme Court in Independent Sugar Corporation Ltd. v. Girish Sriram Juneja & Ors. has reignited the debate on whether the approval of the Competition Commission of India ("CCI") must precede the Committee of Creditors ("CoC") approval in the insolvency process. This note critiques the Court's strict interpretation of the proviso to Section 31(4) of the Insolvency and Bankruptcy Code, 2016 and supports the dissenting opinion, arguing for a liberal interpretation of the proviso to Section 31(4). The note proposes a legislative amendment to the proviso, proposing that CCI approval be required prior to approval of the adjudicating authority (i.e., the NCLT) instead of prior to CoC approval, to better balance regulatory compliance with efficiency of the insolvency process.