• Mon, March 3, 2025

Law changes on cards for quick CCI nod for distressed asset sales after SC order

The SC's judgement overruled a 2023 order of the National Company Law Appellate Tribunal that had said that while the approval of the CCI was mandatory under the proviso to section 31(4) of the Insolvency and Bankruptcy Code,
The Supreme Court of India has ruled that the Competition Commission of India (CCI) must approve asset sales by companies undergoing insolvency proceedings before any transactions can be completed. This decision came after the National Company Law Appellate Tribunal (NCLAT) had previously stated that such sales did not require CCI's prior approval. The Supreme Court's ruling aims to ensure that asset sales do not lead to monopolistic practices or unfair competition, thereby protecting market dynamics. This judgment has significant implications for ongoing and future insolvency cases, potentially affecting the speed and nature of asset resolutions under the Insolvency and Bankruptcy Code (IBC). The decision has sparked discussions on balancing the objectives of the IBC with competition law, with some stakeholders expressing concerns over potential delays in the resolution process.

Read the Full Mint Article at:
https://www.livemint.com/industry/cci-asset-sales-supreme-court-of-india-order-national-company-law-appellate-tribunal-ibbi-bjp-parliament-11740901980943.html

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