14th Feb 2025: With the Supreme Court’s judgment on 29th January 2025 quashing AGI Greenpac’s resolution plan, the Workers’ Union of Hindustan National Glass & Industries Ltd. (HNG) has appealed on 14th February 2025 to the Chief Justice of India, urging urgent intervention to prevent AGI Greenpac from delaying and derailing the insolvency resolution process through a review petition. A copy of the press note is attached.
BACKGROUND OF THE MATTER:
– Hindustan National Glass & Industries Ltd. (HNG) filed for insolvency in October 2021. Two bidders, AGI Greenpac the second-largest player in the container glass industry, (market cap 5000 crs) and Independent Sugar Corp. (INSCO), were vying for HNGIL. Each one of them bid for approx 2200 crs for HNG. On 28th October 2022, the Committee of Creditors (CoC) approved AGI Greenpac’s resolution plan for HNG.
– In September 2023, the National Company Law Appellate Tribunal (NCLAT) upheld the CoC’s approval of AGI Greenpac’s resolution plan.
– Soon after this verdict, Independent Sugar Corporation Ltd. (INSCO) challenged the decision in the Supreme Court, arguing that AGI Greenpac had failed to secure mandatory Competition Commission of India (CCI) approval, as required under Section 31(4) of the Insolvency and Bankruptcy Code (IBC) 2016.
– On 29th January 2025, the Supreme Court ruled in Civil Appeal No. 6071 of 2023 that AGI Greenpac’s resolution plan for HNG was invalid due to non-compliance with CCI approval requirements. The Supreme Court’s judgment nullified AGI Greenpac’s resolution plan and restored all stakeholders to their position before the CoC approval on 28th October 2022.
– On 30th January 2025, INSCO wrote to the CoC, reaffirming its commitment to ensuring a fast and smooth Corporate Insolvency Resolution Process (CIRP) for HNG, in line with the Supreme Court’s ruling.
– Despite the Supreme Court’s judgment, AGI Greenpac filed a review petition in February 2025, raising concerns among HNG’s workers about further delays in the insolvency resolution process. In response, the Workers’ Union of HNG appealed to the Chief Justice of India on 14th February 2025, alleging that AGI Greenpac is attempting to manipulate the legal process to push HNG into liquidation, ultimately benefiting AGI Greenpac by reducing competition in the container glass industry.
HIGHLIGHTS OF APPEAL FROM UNION TO CJI:
– AGI Greenpac’s attempt to manipulate the legal process by seeking a review of the Supreme Court’s landmark judgment of 29th January 2025, even after a senior judge from the original bench has demitted office.
– The threat to judicial integrity posed by corporate tactics aimed at influencing insolvency proceedings to serve vested business interests.
– The risk of setting a dangerous precedent, where dominant industry players could exploit legal delays to force smaller competitors into liquidation.
