Supreme Court’s Ruling Impact on Corporate Law and Global Trade, ET LegalWorld

This week’s corporate law wrap highlights a major shift in India’s insolvency regime after a Supreme Court ruling requiring resolution plan reviews post-CCI clearance—potentially disrupting settled deals. A record ₹10.27 lakh crore investment signals economic optimism. AGI Greenpac’s CCI challenge revives antitrust debates. Globally, the EU’s sustainability rules and U.S. tariffs mark rising regulatory complexity, urging stakeholders to prepare for compliance upheaval.

India developments :

NCLAT Grants Relief to Reliance Infrastructure

In a pivotal move, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings against Reliance Infrastructure, providing a temporary reprieve for the company. This decision underscores the appellate body’s role in scrutinizing lower tribunal orders and ensuring due process.

Supreme Court’s Landmark Ruling on IBC Resolution Plans

The Supreme Court of India has directed that all resolution plans under the Insolvency and Bankruptcy Code (IBC) must be reconsidered if they received Competition Commission of India (CCI) approval after October 28, 2022. This ruling arose from the Hindusthan National Glass & Industries Ltd. (HNGIL) insolvency case, where the Court emphasized the primacy of procedural compliance. Legal experts warn that this precedent could lead to a surge in litigation challenging past resolutions, potentially undermining investor confidence in the IBC process. RBI Imposes Penalties for Compliance Lapses

The Reserve Bank of India (RBI) levied penalties totaling ₹54.78 crore on banks and non-banking financial companies (NBFCs) for failing to adhere to regulatory guidelines during the fiscal year 2025. This action highlights the RBI’s commitment to maintaining stringent compliance standards within the financial sector.

E-Adjudication of Company Law Breaches to Begin

Starting September 16, 2025, the Ministry of Corporate Affairs (MCA) will implement e-adjudication for violations under the Companies Act and Limited Liability Partnership (LLP) Act. This digital initiative aims to streamline the adjudication process, enhancing efficiency and accessibility for companies and professionals.

Extension of Dematerialization Deadline for Private Cos

The MCA extended the deadline for private companies to dematerialize their shares to June 30, 2025. This extension provides companies additional time to comply with the dematerialization requirements, facilitating smoother transitions and reducing the risk of non-compliance.

AGI Greenpac Calls for Revocation of INSCO’s Approval

AGI Greenpac has formally requested the Competition Commission of India (CCI) to revoke the green channel approval granted to Independent Sugar Corporation Ltd. (INSCO) for its acquisition of HNGIL. AGI contends that the approval was procedurally defective, as it was filed unilaterally by INSCO, violating statutory requirements that mandate joint filings. This move follows a Supreme Court directive requiring INSCO to match AGI’s higher bid in the HNGIL insolvency case.

India’s ₹10.27 Lakh Crore Investment Wave

India has secured investment commitments worth over ₹10.27 lakh crore (approximately $123 billion) in the past month, signaling a robust shift towards sustainable manufacturing, green energy, and high-tech innovation. Global giants and Indian conglomerates are increasingly viewing India not just as a market, but as a central growth engine for the 21st century. This surge is attributed to policy continuity, production-linked incentive schemes, and improving infrastructure.

Global: Corporate Legal Developments

U.S. Reinstates Import Tariffs Amid Economic Concerns

A federal appeals court in the United States reinstated sweeping import tariffs, reversing a previous trade court ruling. This decision has intensified uncertainty in trade relations, with potential implications for global supply chains and economic stability.

EU’s Corporate Sustainability Due Diligence Directive

The European Union adopted the Corporate Sustainability Due Diligence Directive, requiring companies to identify and address human rights and environmental risks in their operations and value chains. This directive aims to promote responsible business practices and enhance corporate accountability.

This week, significant developments in corporate law have unfolded both in India and globally, impacting investors, regulators, and businesses alike.

At ETLegalWorld, we will continue to track these legal tremors—not merely for their headline value, but for the deeper shifts they signify in governance, risk, and rights.

• Published On Jun 6, 2025 at 07:35 AM IST

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