Ex-promoters seek hearing in SC against verdict on liquidation of BSPL

The former promoters of Bhushan Steel and Power Ltd on Monday urged the Supreme Court to accord an open court hearing to their plea seeking review of the May 2 verdict ordering liquidation of BSPL under the Insolvency and Bankruptcy Code.

The top court had on May set aside the resolution plan submitted by JSW Steel for the BSPL, holding it illegal and in violation of the Insolvency and Bankruptcy Code (IBC).

A bench comprising Justice Bela M Trivedi (since retired) and Justice Satish Chandra Sharma had also ordered the liquidation of BSPL under the IBC.

The former promoters of BSPL were Sanjay Singhal and his family, specifically including his father Brij Bhushan Singal and brother Neeraj Singal.

On Monday, senior advocate Vikas Singh, appearing for former promoters of the ailing firm, told a bench comprising Chief Justice B R Gavai and Justice K Vinod Chandran that the review plea be listed before a bench for an open court hearing.

The senior lawyer said the value of the assets of the company under liquidation have been fixed at a very low price by the tribunal and the remaining liability will have to be cleared by former promoters.

Let me constitute a bench, the CJI said. Usually, the review petitions against the apex court judgements are decided in chambers by the judges concerned by way of circulation.

The top court, in its verdict, had criticised the conduct of all key stakeholders in the resolution process, the resolution professional, the Committee of Creditors (CoC) and the National Company Law Tribunal (NCLT), for enabling what it termed a "flagrant violation" of the IBC.

Justice Trivedi, since retired, criticised multiple stakeholders, including successful resolution applicant (SRA) JSW Steel Limited, for procedural lapses and failure to uphold the objectives of the IBC.

"Having thoroughly examined the entire matter factually and legally, we arrive at the following irresistible conclusions: the resolution professional had utterly failed to discharge his statutory duties contemplated under the IBC and the CIRP regulations during the course of the entire CIR proceedings of the corporate debtor, BPSL," the verdict had said.

The bench held that the CoC failed to exercise its commercial wisdom while approving JSW's resolution plan, which was in absolute contravention of the mandatory provisions of the IBC and CIRP regulations.