In a recent judgment (Independent Sugar Corporation Limited v. Girish Sriram Juneja), the Apex Court gave significant ruling with respect to interplay between Competition Act, 2002 and IBC, 2016. The Hon’ble Court with 2:1 majority ruled that it is mandatory to obtain the approval of CCI before the resolution plan is approved by Committee of Creditors (CoC) in light of proviso to section 31(4) of the IBC, which requires that where a resolution plan contains a provision for a combination, the resolution applicant must obtain the approval of CCI prior to approval of such resolution plan by CoC. The Hon’ble further held that the issuance of Show Cause Notice (SCN) to both the acquirer and the target under section 29(1) of the Competition Act, 2002 is a non-negotiable procedural requirement.

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