Supreme Court Reverses NCLT's Decision in Hindusthan National Glass Insolvency Case

The National Company Law Appellate Tribunal (NCLAT) has reversed the National Company Law Tribunal's (NCLT) earlier ruling to change the resolution professional overseeing the insolvency case of Hindusthan National Glass Industries (HNG). This latest development directs the NCLT to follow the Supreme Court's specific instructions concerning the approval of resolution plans.

Key to this decision was the apex court's revelation that the approved bid by AGI Greenpac lacked necessary clearance from the Competition Commission of India as per Section 31 of the Insolvency & Bankruptcy Code. This led to the Supreme Court's order to reassess other bids, including that of the Independent Sugar Corporation, with the appropriate regulatory approval.

While the NCLAT acknowledged petitions from several parties questioning NCLT's adjudications, the Supreme Court underscored the need for compliance with statutory provisions, thus directing the lenders' committee to evaluate the Independent Sugar Corporation's bid within a two-week period, setting a precedent in insolvency case protocols.

(With inputs from agencies.)