The Supreme Court will review CCI’s plea challenging the rejection of AGI Greenpac’s resolution plan for HNGIL. Notices have been sent to INSCO and the CoC for their response.
On Thursday, May 8, the Supreme Court of India agreed to look into a request made by the Competition Commission of India (CCI) to reconsider its earlier judgment from January.
In that January ruling, the Court had rejected AGI Greenpac’s resolution plan to take over Hindustan National Glass and Industries Limited (HNGIL), which is India’s biggest glass packaging company, controlling around 60% of the market.
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The Supreme Court has now issued a notice to Indian Sugar Corporation (INSCO) and the Committee of Creditors (CoC), asking them to give their responses regarding the CCI’s concerns.
The CCI said it is facing difficulty in implementing the Court’s earlier decision and has asked the Court to review it.
AGI Greenpac, which is the second-largest company in India’s glass packaging industry, has also filed a petition challenging the rejection of its resolution plan by the Court.
This legal matter is especially important because it involves two of the biggest players in the Indian glass packaging industry—HNGIL and AGI Greenpac.
AGI Greenpac had earlier proposed a plan to take over HNGIL, which has been facing serious financial trouble.
However, in January this year, the Supreme Court turned down that plan. Now, the matter has come back to court as both the CCI and AGI Greenpac are seeking a fresh hearing on the case.
The CCI, which is responsible for ensuring fair competition in Indian markets, is concerned about the practical difficulties it is experiencing after the Court’s rejection of the resolution plan.
The Supreme Court has agreed to look into the matter again and has asked all the involved parties to submit their replies.
The case is being closely followed by legal experts and companies in the corporate sector, as it deals with major questions related to competition law, insolvency proceedings, and resolution plans under the Insolvency and Bankruptcy Code (IBC).
AGI Greenpac’s interest in acquiring HNGIL was also viewed as a strategic move to strengthen its position in the Indian market, where HNGIL holds a dominant share.
AGI Greenpac has argued that its resolution plan followed all legal procedures and was approved by the necessary authorities, but the rejection by the Court came as a major setback.
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Now, with the CCI and AGI Greenpac both raising objections, the Supreme Court will once again examine the issue.
The final decision in this case will have a big impact not only on the future of HNGIL and AGI Greenpac but also on how future corporate takeovers and mergers are handled in sectors with dominant market players.
The Supreme Court has not given a final verdict yet, but by sending notices to INSCO and the CoC, it has shown willingness to reconsider the January order.
The case will be heard again, and all eyes are now on the apex court’s next move.
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