STONES FOR A GLASS HOUSE

Corporate Insolvency Resolution of Hindustan National Glass (HNG), the country's largest and oldest container glass manufacturer, is amongst the most controversial debt resolutions in India. Three former SC judges have highlighted glaring and deliberate lapses that show a sheer abuse of India's Bankruptcy Code.

- Palak Shah

THE UBIQUITOUS, but often inconspicuous, glass bottle that holds a fizzy drink, a cool beverage, a perfume or cosmetic is part of a rather large industry. India’s largest container glass manufacturer Hindustan National Glass & Industries (HNG) that was incorporated in 1946, had an installed capacity to produce 2,825 tonnes per day of glass before it was caught in a debt trap and went into insolvency.

In October 2021, the Kolkata bench of the National Company Law Tribunal (NCLT) admitted an application for initiating the Corporate Insolvency Resolution Process (CIRP) for HNG. Ironically, four years down the line and much litigation and insolvency regulatory processes later, no corporate knight in shining armour has been able to rescue the debt-ridden company. 

The HNG resolution has turned out to be among the longest stretching corporate insolvency processes in India and at least three former judges of the Supreme Court of India (SC) have highlighted malpractices of the Resolution Professional (RP) Girish Juneja, along with shortcomings of the Competition Commission of India (CCI).

What is the Controversy About?

In September 2023, the Kolkata bench of the NCLT decided to consider bidder AGI Greenpac’s resolution plan for HNG despite the fact that on the date of filing its resolution AGI’s plan lacked a CCI approval, mandatory as per the IBC rules and criteria specified in the RFRP (request for resolution plan) issued by Resolution Professional Juneja.