According to the latest round of proposed amendments in Insolvency and Bankruptcy Code (IBC) 2016, approval of Competition Commission of India (CCI) may be required before the approval of the resolution plan by the Committee of Creditors (CoC) in combination cases under S. 31(4) of IBC, the sources said.

The company bidding for a stressed asset in the same sector in which it is operating may accordingly require CCI's approval before finalization of bids during the insolvency process.

There could be a situation where NCLT approves a resolution plan but CCI would reject it on the likelihood of AAEC of the proposed combination in the relevant market, this would obviate such a situation.

According to reports, the matter is under active consideration.