SC's JSW Steel decision a blow to insolvency process, say experts

The Supreme Court had invoked Section 142 of the Constitution to nullify the CoC decision

The Supreme Court decision setting aside JSW Steel’s resolution plan for Bhushan Power and Steel and ordering its liquidation could spook investors and be a serious setback for the Insolvency and Bankruptcy Code (IBC) process in the country, according to experts.

 

“This decision has serious implications for the IBC. This would discourage applicants from submitting plans on apprehensions that it might be undone someday. Who would want to take that kind of risk? It is not only rewriting the past but also creating uncertainty for the future of the IBC,” M S Sahoo, distinguished professor, National Law University,