2026 (2) TMI 33 - AT - IBC

Deemed CCI approval under Green Channel in insolvency resolution: appellate review refused; challenge to proceed before CCI or HC

Deemed approval under the Green Channel regime treats a proposed combination as approved upon filing and acknowledgement; the Competition Commission ... Deemed approval under Green Channel - approval of Resolution Plan under Section 31 sub-section (4) of the Insolvency and Bankruptcy Code, 2016 - forum for examination of combinations is the Competition Commission of India - HELD THAT:- The relevant facts have been placed before the CCI, where it has been submitted that application, which was submitted by Independent Sugar Corporation was not in accordance with the CCI Act and the CCI Regulations 2011 and there was suppression of relevant facts in the application. After filing of the complaint, when the CCI did not take any action, a Writ Petition has been filed in the Delhi High Court with the prayers as quoted above in this judgment. Learned Counsel for the parties submitted that the Writ Petition filed by the Appellant before the Dehi High Court is pending consideration. When we look into the Regulation 5A of the CCI Regulations 2011 as relied by the Appellant, the provision itself contemplate that upon filing of a notice under sub-regulation (1) and acknowledgement thereof, the proposed combination shall be deemed to have been approved by the CCI. Where the CCI finds that the combination does not fall under Schedule III and/or the declaration filed pursuant to sub-regulation (1) is incorrect, the notice given and the approval granted under this regulation shall be void ab initio and the Commission shall deal with the combination in accordance with the provisions contained in the Act. The Forum for examining the combination, which has been deemed to be approved is the CCI. The issue which is sought to be raised in this application, cannot be gone into and decided in this Appeal, which has been filed challenging the order approving the Resolution Plan of the Successful Resolution Applicant. The Appellant having already filed a complaint before the CCI and also pursuing the Writ Petition in the Delhi High Court praying for quashing the deemed approval granted by the CCI, we are of the view that neither the said issue can be gone into in this application, nor the additional documents, which are sought to be brought on record by this application can be accepted. We, thus, are of the view that prayers made in the application cannot be accepted. IA is rejected. Issues: Whether IA No.297 of 2026 seeking permission to place on record additional documents relating to a deemed CCI approval obtained under the Green Channel (Regulation 5A, CCI Regulations 2011) can be admitted in Company Appeal (AT) (Ins.) No.1342 of 2025 which challenges approval of a resolution plan under Section 31(4) of the IBC.Analysis: The application seeks to introduce documents and material challenging the validity of a deemed approval granted under the Green Channel regime of CCI (Regulation 5A, CCI Regulations 2011). Regulation 5A provides that a notice filed under the Green Channel is deemed approved upon acknowledgement, subject to the CCI later finding that the combination does not fall within Schedule III or the declaration is incorrect, in which event the approval is void ab initio and the matter is to be dealt with by the Commission. The Tribunal observed that the question of correctness or validity of a deemed CCI approval is within the exclusive domain of the CCI (and, as pursued, the High Court on writ), and that the present appeal is against the Adjudicating Authority's order approving a resolution plan under Section 31 of the IBC. The Appellant has already invoked remedies before the CCI and filed a writ in the High Court which remains pending; therefore the contention and documents challenging the CCI's deemed approval are not germane to admission in this appeal and cannot be adjudicated in the present forum. In these circumstances the Tribunal declined to entertain or admit the additional documents sought to be placed on record through the instant application.Conclusion: IA No.297 of 2026 is rejected; the application to place on record the additional documents challenging the deemed CCI approval is not admitted (decision in favour of Respondent).