CCI approval mandatory for Resolution Plan approval by CoC

In its recent decision in the matter of Independent Sugar Corporation Limited v. Girish Sriram Juneja and Ors [Civil Appeal No. 6071 of 2023], the Hon’ble Supreme Court examined whether it is mandatory to obtain the “prior approval” of the Competition Commission of India (CCI) before the approval of a resolution plan by the Committee of Creditors of a corporate debtor in terms of the proviso to Section 31(4) (Proviso) of the Insolvency and Bankruptcy Code, 2016 (IBC). In the said judgment, the Supreme Court also examined whether the Competition Act, 2002 (Competition Act) allowed the CCI flexibility (in terms of procedural safeguards) whilst approving combinations which could potentially impact relevant markets.