The Trade Union of Hindustan National Glass Industries (HNGIL) has written to the Committee of Creditors (CoC) and the Resolution Professional (RP) to ensure fair treatment for employees in the ongoing insolvency resolution process of the company.
The letter raises concerns about workers’ rights, pending dues, and lack of representation in decision-making.
HNGIL has been undergoing insolvency proceedings since October 2021, with AGI Greenpac and Uganda-based Madhvani Group’s Independent Sugar Corp (INSCO) competing to acquire the company through a ₹2,200 crore resolution plan.
The Supreme Court’s judgment on January 29 quashed AGI Greenpac’s resolution plan due to regulatory non-compliance, instructing the CoC to reconsider INSCO’s plan and any other bids that had requisite approvals.
In its latest communication, the Trade Union has criticised the CoC and RP for failing to consider the interest of over 5,000 workers, whose livelihoods depend on HNGIL.
The letter outlines several key demands such as, settlement of pending salaries and benefits before finalising a new resolution plan. It also urged for job security assurances from any new resolution applicant and inclusion of worker representatives in discussions with bidders and creditors. Citing urgency to fast track the process, it asked for preventing further regulatory violations that could lead to additional delays.
The Union warned that continued disregard for workers’ rights will result in legal action and public protests, in the letter.
Earlier, the Union had written to the Finance Minister and Competition Commission of India, demanding strict accountability for previous legal lapses and greater transparency in the resolution process.
HNGIL filed for insolvency in October 2021. Two bidders, AGI Greenpac and INSCO were vying for the company with their bids of about ₹2,200 crore.
In September, 2023 the National Company Law Appellate Tribunal upheld the approval of AGI Greenpac’s resolution plan.
However, INSCO approached the Supreme Court and raised concerns that AGI Greenpac’s resolution plan for HNGIL was approved by the CoC without obtaining prior approval from the Competition Commission of India, as mandated under the Insolvency and Bankruptcy Code.
On January 29, the Supreme Court quashed AGI Greenpac’s resolution plan for not obtaining prior CCI approval. The CoC has now been directed by the Supreme Court to reconsider the resolution plan submitted by INSCO, along with any other plans that had the requisite CCI approval as of October, 2022.