AGI Greenpac Ltd.’s resolution plan for the acquisition of insolvent Hindustan National Glass Ltd. is unsustainable and has to be set aside, the Supreme Court has held.
A three-judge bench of the top court comprising Justices Hrishikesh Roy, Sudhanshu Dhulia, and S.V.N Bhatti stated that any action that may have been taken after the resolution plan was approved by the committee of creditors will be nullified. “The approval by the committee of creditors has been set aside,” the top court said.
The court further stated that fresh resolution plans should now be considered for HNG’s acquisition.
At the heart of the matter lay the issue of interpretation of a particular provision, section 31(4), of the IBC.
Section 31(4) says that in cases of…
