AGI Greenpac seeks review of SC order in Hindustan National Glass IBC case
This story was originally published at 12:24 IST on 12 February 2025
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--AGI Greenpac seeks review of SC order in Hindustan National Glass IBC case
--CONTEXT: SC had nixed AGI Greenpac's IBC plan for Hindustan National Glass
NEW DELHI – AGI Greenpac Ltd. has moved the Supreme Court seeking a review of the court's Jan. 29 order rejecting the company's resolution plan for the debt-ridden Hindustan National Glass & Industries Ltd. AGI Greenpac also sought a stay on any actions by the committee of creditors of Hindustan National Glass & Industries, which was admitted to insolvency in 2021.
Further, AGI Greenpac has also filed an interlocutory application before the Kolkata bench of the National Company Law Tribunal. In the application, AGI has sought to prevent the committee of creditors and the resolution professional of Hindustan National Glass from taking any further actions until the Supreme Court rules on the review petition.
Last month, the apex court had rejected AGI Greenpac's resolution plan, calling it unsustainable as it had not taken the requisite aproval of the Competition Commission of India, which was mandatory before the committee of creditors can approve a resolution plan. On Oct. 28, 2022, the committee of creditors had approved AGI Greenpac's resolution plan with 98% votes in its favour despite no prior approval from the competition watchdog. The top court said the committee of creditors should reconsider the resolution plan that had got the Competition Commission of India's approval as of Oct. 28, 2022.
The top court had allowed an appeal by resolution applicant Independent Sugar Corp. Ltd., which had secured the necessary approval from the competition watchdog. Independent Sugar's resolution plan had received only 88% favourable votes from the committee of creditors.
In 2021, the Kolkata bench of the National Company Law Tribunal had admitted a petition by DBS Bank to start insolvency proceedings against Hindustan National Glass & Industries. In March 2022, Hindustan National Glass' resolution professional issued an invitation for expressions of interest. The request for a resolution plan contained a provision of mandatory approval by the Competition Commission of India, prior to approval by the committee of creditors.
Two resolution applicants--Independent Sugar and AGI Greenpac--submitted their resolution plans in April 2022. In September 2022, AGI Greenpac submitted an application for approval of its plan to the competition commission. The same month, Independent Sugar received the requisite approval from the competition commission. In October 2022, the competition watchdog declared the application filed by AGI Greenpac as not valid.
However, the committee of creditors approved AGI Greenpac's resolution plan. In November 2022, AGI Greenpac submitted another application before the competition commission for its approval. In March 2023, the competition commission gave its approval to the resolution plan.
In April 2023, the Kolkata bench of the National Company Law Tribunal had rejected Independent Sugar's plea, which sought setting aside the selection of the resolution plan submitted by AGI Greenpac.
On an appeal by Independent Sugar, the National Company Law Appellate Tribunal held, "We, thus, are of the view that Section 31, sub-section (4) proviso (of Insolvency and Bankruptcy Code, 2016) has to be read to mean that though the approval by the CCI is 'mandatory', the approval by the CCI prior to approval of CoC is 'directory'."
At 1131 IST, shares of AGI Greenpac were up 0.8% at INR 682.70 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Tanima Banerjee
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