 "SC recalls Bhushan Steel liquidation order, seeks fresh legal review")
The Supreme Court on Thursday recalled its May 2 verdict directing the liquidation of Bhushan Steel and Power Limited (BSPL), news agency PTI reported.
Earlier, the top court had invalidated a resolution plan submitted by JSW Steel for BSPL, calling it unlawful and in violation of the Insolvency and Bankruptcy Code (IBC).
A Bench led by Chief Justice BR Gavai and Justice Satish Chandra Sharma reviewed multiple petitions and stated that the matter required reconsideration, observing that the earlier judgment had not correctly interpreted the relevant legal provisions.
May 2 ruling overturned
On May 2, a Bench headed by now-retired Justice Bela M Trivedi had quashed JSW Steel’s resolution plan for BSPL.
“We are of the view that the impugned judgment does not correctly consider the legal position as has been laid down. Apart from that, it is submitted that various factual aspects have been taken into consideration, arguments which were not advanced were also considered, though this position is disputed,” the current Bench said.
"This is a fit case wherein judgment under review needs to be recalled and the matter is to be considered afresh,” it added.
The petitions have now been listed for a fresh hearing next Thursday.
Previous Bench had criticised stakeholders
The earlier Bench led by Justice Trivedi had criticised the conduct of all key stakeholders in the corporate resolution process, including the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT), citing a “flagrant violation” of the IBC.
In that ruling, Justice Trivedi stated that the resolution professional had failed to fulfil statutory duties under the IBC and its associated regulations. The CoC, the court noted, had approved JSW Steel’s resolution plan without adequately applying its commercial judgment.
The judgment further held that the resolution plan violated mandatory provisions of the IBC, did not sufficiently protect creditor interests, and that the CoC had accepted payments from JSW Steel despite the deficiencies, without objection.
JSW Steel had secured the bid to acquire Bhushan Power & Steel under the IBC framework for just under ₹20,000 crore.