Government Set to Amend Insolvency Code in Monsoon Session

The central government is poised to introduce significant amendments to the Insolvency and Bankruptcy Code (IBC) during the approaching monsoon session of Parliament, sources have confirmed to ANI. A key focus will be on Section 31(4) of the IBC, which currently mandates that any resolution plan requires prior approval from the Competition Commission of India (CCI).

According to insiders, this amendment is expected to ease the workload of the Competition Commission of India (CCI). The new provision aims to eliminate the necessity for CCI approval for companies pursuing resolutions via the IBC, thereby streamlining the process.

This initiative comes in response to a Supreme Court observation during the resolution plan hearings for AGI Greenpac. The court emphasized that the resolution was unsustainable without CCI's endorsement, underscoring the need for legislative action.

In January 2025, the Supreme Court expressly stated that AGI Greenpac Ltd's proposed acquisition of the insolvent Hindustan National Glass (HNG) Ltd was untenable without CCI's consent. The court invalidated the plan, as it contravened Section 31(4) of the IBC, which mandates such approvals. The approval by the Committee of Creditors (CoC) for the plan dated October 28, 2022, was subsequently nullified due to the absence of CCI clearance.

(With inputs from agencies.)