Whether resolution plan can be put to vote without prior permission of the Competition Commission?
The Bank filed Section 7 IBC against Company-A which is the leader in glass industry. The NCLT admitted the petition and RP invited plans for resolution. The Company-B (2 nd largest) and Company-C submitted their plans. The plan of Company-B got approved however on account of proposed combination, it was mandated that approval of CCI must be obtained before filing of application before NCLT. The CCI approval was taken only after plan got approved. Both CCI approval and plan approval was challenged by Company-C before NCLAT. However, the NCLAT upheld the plan. The Hon’ble Supreme Court in 2:1 held as under [1] : Shubham Budhiraja [2] Literal interpretation of proviso 1. The introduction of a proviso, specifically addressing those Resolution Plans with provisions for combination, and the use of the term ‘prior’ therein, makes it starkly clear that the intent of the legislature was to create an exception . ...