Resolution Professional Must Ensure Resolution Plan is Legally Compliant Before CoC Approval : SC

The Supreme Court ruled (2:1) that any resolution plan involving a business merger (combination) must get prior approval from the Competition Commission of India (CCI) before being placed before the Committee of Creditors (CoC) under Section 31(4) of the IBC.

The case involved Hindustan National Glass and Industries Ltd. (HNGIL) and AGI Greenpac, where CoC approved AGI’s plan before CCI’s approval, violating Section 6 of the Competition Act.

Overruling NCLAT, the SC emphasized IBC and Competition Act must align, ensuring only legally compliant plans proceed.

This decision strengthens competition regulation in insolvency proceedings.