Bhushan Power and Steel case: A test for India's insolvency regime

The Supreme Court’s recent decision to liquidate Bhushan Power and Steel Ltd (BPSL), five years after its resolution plan was approved and implemented, has sent shockwaves through India’s financial and corporate sectors. By overturning JSW Steel’s takeover of BPSL, the ruling has raised fresh questions about the Insolvency and Bankruptcy Code (IBC) and the institutions responsible for enforcing it. 

A landmark reversal 

In a major reversal, the Supreme Court ruled that the resolution plan for BPSL, approved by the committee of creditors (CoC) and cleared by both the insolvency and the appellate tribunals (National Company Law Tribunal, or NCLT, and