Supreme Court Revokes AGI Greenpac’s Takeover Plan: A Landmark Ruling

The Supreme Court nullified AGI Greenpac's resolution plan for Hindustan National Glass and Industries Ltd, citing non-compliance with mandatory provisions. The ruling emphasized the necessity of obtaining Competition Commission of India approval before approval by creditors to ensure market fairness and prevent monopolization in the glass packaging industry.

The Supreme Court, in a critical judgment, has overturned the approval for AGI Greenpac's resolution plan to acquire Hindustan National Glass and Industries Ltd (HNGIL). The majority decision by Justices Hrishikesh Roy and Sudhanshu Dhulia highlighted the plan's non-compliance with necessary procedures under the Insolvency and Bankruptcy Code.

A primary contention was the lack of prior approval from the Competition Commission of India, which is essential to maintain fairness and prevent market monopolization. HNGIL, a leading player in India's glass packaging industry, faced a competitive bid by AGI Greenpac, which aimed to control 100% of the shares amid concerns it could negatively impact industry competition.

The court's decision mandates a status quo pre-approval as of October 28, 2022, compelling the Committee of Creditors to reassess those resolution plans with prior requisite approvals. The ruling reinforces the necessity for statutory compliance, ensuring that the insolvency process remains just and equitable for all stakeholders.

(With inputs from agencies.)