NCLAT Clears Path for Hindusthan National Glass Resolution

The National Company Law Appellate Tribunal (NCLAT) has quashed the National Company Law Tribunal’s (NCLT) order to substitute the resolution professional (RP) monitoring the corporate insolvency resolution process (CIRP) of HNGIL. This decision will bring some fresh air to the ongoing insolvency of one of the country’s largest glass manufacturers; it takes a firm steer to move the wheels of the resolution without hitting any other pothole.

Supreme Court’s Intervention and Directives

The Supreme Court has played a decisive role in shaping the resolution process for HNGIL. In its order passed on May 16, 2025, the apex court asked the Committee of Creditors (CoC) to decide on the resolution plan submitted by Independent Sugar Corporation (INSCO) in two weeks. The apex court also directed the NCLT to complete the CIRP within six weeks from the date of its order, in other words, speeding up the process and giving a deadline to various parties involved in the resolution.

Background: Competing Bids and Legal Disputes

HNGIL entered insolvency proceedings in October 2021, with Girish Siriram Juneja appointed as the RP. CoC had earlier cleared a resolution plan by AGI Greenpac with a 98% majority vote. But the process faced opposition from operator creditor Soneko Marketing—one of the company's lenders—which demanded removal of the RP and opposed approval of the bids. AGI Greenpac’s plan was first approved by the NCLT in April 2023, but its clearance was challenged both at the NCLAT and then the Supreme Court.

Supreme Court’s Rejection of AGI Greenpac’s Bid

The Supreme Court has set aside the resolution plan of AGI Green as it did not meet the regulatory requirement of having a Competition Commission of India (CCI) clearance. The CoC was subsequently urged by the Court to re-evaluate other plans which were also eligible, including that of INSCO, which had all the approvals.

INSCO’s Revised Resolution Plan and CoC Approval

As per the order of the Supreme Court, INSCO submitted a revised resolution plan – to the tune of ₹2,752 crore - including an upfront cash payment of ₹2,200 crore and equity with a valuation of about ₹550 crore. The CoC was ordered to consider this acceptance plan and voting was scheduled to finish by July 2025. INSCO has proposed that the entire cash component be paid within 30 days of NCLT’s nod, while it would infuse working capital and issue equity to the members of the committee of creditors in 90 days.

Clarity on the Role of the Resolution Professional

One of the issues before Gauthier was whether the RP's power ceased after his AFA was revoked. The HC, based on clarification by the Insolvency and Bankruptcy Board of India (IBBI), said the suspension of RP’s AFA does not bar him from performing his prevailing duties. This clarification allowed the CoC to proceed with the implementation of INSCO’s resolution plan and rejected the intervention applications filed by AGI Greenpac and other objecting parties.

Workers’ Union’s Call for Expedited Resolution

HNGIL workers' union has been saying it is in the interest of over 5,000 employees that the CoC should quickly move on Amtek Auto and close it. The union also questioned the alleged efforts of the former promoters and AGI Greenpac in stalling the CIRP through “clear directives” of the Supreme Court.

Conclusion

The NCLAT’s order of upholding RP’s contentions and passing direction to the NCLT to follow the orders of the Supreme Court has made it clear the massive legal development of insolvency resolution of Hindusthan National Glass Industries. With INSCO’s new resolution plan being considered now and the legal position on the role of RP being defined, we are all set to move ahead on CIRP as well. It is hoped that the outcome would be in the best interests of the creditors, employees and stakeholders in general and may even restore HNGIL to operations and also create a precedent to resolve future insolvencies in the Indian manufacturing sector. According to INSCO's management, the positive outcome would also represent a watershed for the larger glass packaging industry and would be in sync with the increasing demand of India for sustainable options.