NCLAT Declines to Stay Resolution Proceedings for Hindusthan National Glass & Industries Ltd

The National Company Law Appellate Tribunal (NCLAT) has decided not to halt the National Company Law Tribunal's (NCLT) approval of Hindusthan National Glass & Industries Ltd's (HNG) resolution plan. This decision comes despite several appeals challenging the plan. The Kolkata bench of NCLT had approved the resolution plan submitted by Independent Sugar Corporation Ltd (INSCO) following Supreme Court directives from January and May 2025.

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AGI Greenpac Ltd, former promoter Mukul Somany, dissenting financial creditor Exclusive Capital Ltd, and operational creditor Soneko have contested the resolution plan. However, the Committee of Creditors (CoC) counsel argued that the approval followed Supreme Court directions dated January 29, 2025, and May 16, 2025. A two-member NCLAT bench led by Justice Ashok Bhushan and technical member Barun Mitra has issued notices to respondents, requesting replies within three weeks.

Resolution Plan Implementation

Rejoinders may be filed within a week after responses are received. The appeals are scheduled for a joint hearing on October 9, 2025. The tribunal clarified that while appeals are pending, the successful resolution applicant must adhere to obligations under the approved plan, with actions subject to appeal outcomes. An INSCO spokesperson stated, "We respect the proceedings before the NCLAT and will continue to abide by all directions of the courts. INSCO remains committed to implementing the approved resolution plan in the interest of all stakeholders."

Without interim relief, the resolution plan's implementation continues. Following NCLT's approval of the Rs 2,200 crore plan, HNG's formal acquisition process is underway. The Monitoring Transition Phase spans 45 days from approval and is currently ongoing. On August 14, 2025, NCLT approved INSCO's resolution plan for HNG's revival.

Financial Details of the Plan

The CoC approved the plan on June 13, 2025, with a significant majority of 96.16 per cent. According to NCLT's order, the plan involves a total investment of Rs 2,250 crore. This includes Rs 1,900 crore in upfront cash and Rs 350 crore deferred over three years to CoC along with a five per cent equity allocation to creditors.

With inputs from PTI