Independent Sugar Corporation Ltd. (INSCO), the successful resolution applicant for Hindustan National Glass & Industries Ltd. (HNGIL), has written to the Committee of Creditors (CoC), alleging that that Exclusive Capital, a minority Committee of Creditors (CoC) member has been “persistently attempting to derail the corporate insolvency resolution process (CIRP)“, despite the majority CoC members and the Supreme Court’s approving the resolution plan.
INSCO has urged the lead members of the CoC to ensure that Exclusive Capital’s representatives “participate in CoC meetings only with the explicit approval of NCLAT’s appointed administrator.”
It has also emphasised that any “further delay in implementing the Supreme Court’s order would be against the interests of all stakeholders and could amount to contempt of court.”
The company has called upon the CoC to take decisive steps to prevent further delays, stating that non-compliance with the Supreme Court’s directives could invite legal consequences.
HNGIL, India’s largest container glass manufacturer, entered insolvency in October 2021 under the Insolvency and Bankruptcy Code (IBC), 2016, after defaulting on loans exceeding ₹2,000 crore.
The insolvency proceedings attracted multiple bidders, AGI Greenpac with a market cap ₹4,700 crores and INSCO, a global industrial group with experience in glass manufacturing emerging as the key contenders.
The National Company Law Appellate Tribunal (NCLAT) initially upheld the AGI Greenpac-led resolution plan in September 2023, but this approval was challenged by INSCO before the Supreme Court of India.
INSCO argued that AGI Greenpac’s plan had been approved by the CoC without obtaining the mandatory prior approval from the Competition Commission of India (CCI), as required under Section 31(4) of the Insolvency and Bankruptcy Code (IBC).
In a verdict on January 29, 2025, the Supreme Court quashed AGI Greenpac’s resolution plan for failing to meet regulatory requirements. It also reversed the NCLAT order that had upheld AGI’s plan and directed the CoC to reconsider resolution plans, ensuring full compliance with competition law.
Published – March 21, 2025 12:06 pm IST
