The Insolvency and Bankruptcy Code, 2016 (“IBC”) is intended to be sector agnostic and to provide a uniform framework for corporate insolvency resolution and liquidation for diverse businesses regardless of their industry sector. Nevertheless, there are challenges under the IBC framework for companies operating in certain industries, owing in large part to the nature of their value generating assets and the sector specific regulations governing their industry.

Introduction

The Supreme Court's recent judgement in Independent Sugar Corporation Ltd. v. Girish Sriram Juneja & Ors.^[1] has reignited the debate in respect of the timing for Competition Commission of India (“CCI”) approval for resolution plans under the Insolvency and Bankruptcy Code, 2016 (“IBC”).

Consolidation of business by way of a merger is a widely accepted mechanism for corporate restructuring.

The National Company Law Tribunal (“NCLT”) is an adjudicating authority in India responsible for deciding matters related to amalgamations, mergers, insolvency and restructuring processes. In deciding such matters, one critical function of the NCLT is to balance the commercial objectives of companies with the interests of public stakeholders and regulators, ensuring that corporate restructurings do not compromise public interest.