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Key Points

The government is set to amend the IBC to remove mandatory CCI approval for resolution plans. This follows the Supreme Court’s rejection of AGI Greenpac’s bid for HNG due to lack of CCI clearance. The change aims to simplify insolvency proceedings and reduce regulatory delays. The amendment is expected in the upcoming monsoon session of Parliament.

Key Points: Government Plans IBC Amendment to Remove CCI Approval Requirement

  • Amendment targets Section 31(4) of IBC
  • Aims to reduce CCI workload
  • Follows SC ruling on AGI Greenpac case
  • Streamlines corporate insolvency resolution
2 min read

Government likely to bring IBC amendment bill in Parliament's monsoon session: Sources

The Centre may amend IBC Section 31(4) to eliminate mandatory CCI approval for resolution plans, easing corporate insolvency processes.

"AGI Greenpac’s resolution plan is unsustainable as it failed to secure prior approval from the CCI – Supreme Court"

New Delhi, May 20

The central government is likely to bring an amendment in the Insolvency and Bankruptcy Code (IBC) in the upcoming monsoon session of Parliament, sources told ANI.

The amendment in Section 31(4) of the Insolvency and Bankruptcy Code (IBC) will be made. This particular section mandates prior approval from the CCI for any resolution plan.

Sources said the amendment in IBC will reduce the load on the Competition Commission of India (CCI).

Once the new amendment is adopted, approval from CCI would not be needed for a company planning resolution under the IBC route, they added.

The plan to amend the IBC comes in the wake of Supreme Court's latest observation during the hearing of the resolution plan of AGI Greenpac.

The apex court had noted that the resolution was unsustainable without CCI approval.

The Supreme Court had reportedly observed in January 2025 that AGI Greenpac Ltd's bid for the acquisition of insolvent Hindustan National Glass (HNG) Ltd without the Competition Commission of India's (CCI) approval is unsustainable and must be set aside.

"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 Insolvency and Bankruptcy Code (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 apex court order had said.

- ANI

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Reader Comments

R
Rajesh K.
This amendment makes perfect sense! The CCI approval process was creating unnecessary delays in resolution plans. In our fast-moving economy, we need quicker solutions for stressed assets. Hope this helps revive more companies faster. 👍
P
Priya M.
While I understand the need for faster resolutions, I'm concerned this might lead to monopolistic practices. The CCI approval served as an important check. Government should ensure alternative safeguards are put in place.
A
Amit S.
Good move! The IBC has been a game-changer for India's business landscape. Streamlining processes will make it more effective. Just hope this doesn't become another case of 'chalta hai' attitude towards corporate governance.
S
Sunita R.
As a small business owner, I've seen how lengthy processes hurt companies in distress. This amendment could help save jobs and businesses. But please don't compromise on fair competition - that's what makes our market vibrant!
V
Vikram J.
The Supreme Court's observation in AGI Greenpac case showed the current system's flaws. This amendment seems like a practical solution. Hope it balances speed with fairness. Our economy needs both! 🇮🇳
N
Neha P.
Interesting development! But will this apply retrospectively to pending cases? Many resolution plans are stuck due to CCI approvals. Clarity needed on implementation timeline and transition provisions.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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