NEW DELHI, May 20 — The Centre is likely to introduce an amendment to the Insolvency and Bankruptcy Code (IBC) during the upcoming monsoon session of Parliament, aimed at removing the requirement of prior approval from the Competition Commission of India (CCI) for resolution plans under insolvency.
According to sources, the amendment will focus on Section 31(4) of the IBC, which currently mandates that any company undergoing resolution must secure clearance from the CCI before a plan can be approved. The proposed change is expected to ease the regulatory burden on the CCI and streamline the insolvency process.
“The amendment would remove the need for companies to seek CCI approval during the resolution stage, thus reducing delays and pressure on the commission,” said a senior official familiar with the development.
This legislative move follows a recent Supreme Court ruling in the AGI Greenpac-Hindustan National Glass (HNG) matter. The apex court had, in January 2025, quashed AGI Greenpac’s resolution plan for acquiring HNG, stating that it was “unsustainable” due to the absence of CCI clearance.
In its verdict, the Supreme Court observed: “AGI Greenpac’s resolution plan is unsustainable as it failed to secure prior approval from the CCI, as mandated under the proviso to Section 31(4) of the IBC. Consequently, the approval granted by the Committee of Creditors (CoC) to the resolution plan dated October 28, 2022, without the requisite CCI approval, cannot be sustained and is hereby set aside and quashed.”
The Centre’s move to amend the IBC is being seen as a response to such legal hurdles and is aimed at ensuring smoother resolution proceedings in the future, especially for large insolvency cases involving mergers or acquisitions.
