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The National Company Law Appellate Tribunal (NCLAT) on Friday dismissed all four appeals challenging CCI’s approval of the takeover of Hindustan National Glass & Industries Limited (HNG) by AGI Greenpac.
This NCLAT move is set to clear the path for faster resolution of HNG under IBC. The matter is pending before NCLT Kolkata.
In their 75-page order, the NCLAT Principal Bench comprising Chairman Justice Ashok Bhushan and Lead Technical Member Barun Mitra held that the CCI had considered all material on record and had not committed any error in approving the combination under the Competition law.
Those who had separately appealed before the NCLAT challenging the CCI’s March order were Uttar Pradesh Glass Manufacturers Syndicate (UPGMS) Independent Sugar Corporation Limited (INSCO); Geeta and Company (Geeta & Co.) and HNG Industries Thozilalar Nala Sangam (HNGTNS).
These separate appeals were clubbed together as they arose out of common facts and challenged the same impugned order.
NCLAT was of the opinion that orders of expert bodies like CCI do not warrant interference, more so when it has duly followed the procedure prescribed by the Act and Regulations.
The Appellate Tribunal noted that the submissions of Appellants that the concerns raised have not been addressed are not correct, since the CCI by detailed order considered all aspects, facts and figures of the combination.
Therefore, there is no impropriety in the order passed by the CCI and the same is not liable to be set aside, NCLAT ruled.
It maybe recalled that AGI Greenpac emerged as the highest bidder in September 2022 for the acquisition of HNG under a bidding process run by Resolution Professional and Committee of Creditors led by the State Bank of India.
INSCO lost the bidding process to AGI Greenpac and AGI Greenpac’s resolution plan was approved by 98 per cent of the Committee of Creditors in October 2022.
Meanwhile, AGI Greenpac, in a statement post the NCLAT ruling, said that its proposed acquisition of HNG is expected to maintain the supply chain of liquor, beer, food, and pharmaceutical sectors, which require regular supplies of container glass bottles.
The glass manufacturing furnaces of HNG have not been maintained for a long time, and a few of the furnaces have leaked, leading to uncertainties of supplies to major liquor, food, and pharma sector.
AGI plans to make substantial investments post-acquisition of HNG towards refurbishing furnaces and is expected to maintain the livelihood of all direct and indirect labour involved with its business, it added.
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