Will the SC Review JSW Steel and CoC's Pleas on BPSL Liquidation?
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Synopsis
The Supreme Court is set to revisit its decision regarding the liquidation of Bhushan Power and Steel Limited (BPSL) following petitions from JSW Steel and the Committee of Creditors. The outcome could significantly impact the future of the financially struggling company and its stakeholders. Stay tuned for developments.
Key Takeaways
- The Supreme Court will review the liquidation ruling on BPSL.
- JSW Steel's resolution plan was deemed inadequate.
- The hearing date is set for July 31, 2025.
- Interim relief was granted to JSW Steel in May.
- BPSL's steel plant plays a key role in JSW's capacity.
New Delhi, July 29 (NationPress) The Supreme Court has agreed to hear review petitions contesting its previous ruling that mandated the liquidation of the financially troubled Bhushan Power and Steel Limited (BPSL).
The apex court has scheduled an open court hearing for July 31, stating: "Application(s) for listing review petition(s) in open Court and application for oral hearing are allowed. Issue notice. List these matters on 31.07.2025 at 03:00 p.m."
The review petitions were initially reviewed in chambers by Chief Justice of India B.R. Gavai and Justice S.C. Sharma.
In a ruling issued on May 2 this year, a bench comprising Justices Bela M. Trivedi and Sharma determined that the liquidation of BPSL was necessary, asserting that JSW Steel’s resolution plan, valued at Rs 19,300 crore, was inconsistent with the Insolvency and Bankruptcy Code (IBC), 2016.
The bench, led by Justice Trivedi, criticized the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT) for compromising the fundamental goals of the IBC, including the timely resolution of insolvency, maximizing asset value, and following relevant regulations.
It ruled that JSW Steel’s resolution proposal failed to safeguard creditor interests and was seemingly approved by the CoC without appropriate commercial judgement.
Subsequently, in an interim relief to JSW Steel, the Supreme Court issued a May 26 order maintaining the status quo on BPSL's liquidation proceedings in the name of justice.
The apex court has paused the NCLT from advancing with the liquidation process initiated by BPSL's former promoter, Sanjay Singhal, until the review petitions filed by JSW Steel and lenders against the May 2 ruling are resolved.
BPSL operates a steel plant in Odisha, boasting a capacity of 4.5 million tonnes per annum (MTPA), which is a crucial component of JSW Steel’s overall domestic capacity of 34.2 MTPA.
Point of View
The Supreme Court's decision to hear review petitions on BPSL's liquidation highlights the judiciary's role in ensuring corporate accountability and protecting creditor interests. The outcome will not only affect the stakeholders of BPSL but may also set precedents for future insolvency cases under the IBC.
NationPress
30/07/2025
Frequently Asked Questions
What is the Supreme Court's role in the BPSL liquidation case?
The Supreme Court is reviewing petitions that challenge its earlier ruling on BPSL's liquidation, ensuring fair treatment of stakeholders.
When is the hearing scheduled?
The hearing is set for July 31, 2025, at 3:00 p.m.
What was the initial ruling regarding BPSL?
The Supreme Court ordered BPSL's liquidation, stating that JSW Steel's resolution plan did not comply with the IBC.
How does this affect creditors?
The court's decision aims to protect creditor interests, which were allegedly overlooked in the initial resolution plan.
What is the capacity of BPSL's steel plant?
BPSL's steel plant in Odisha has a capacity of 4.5 million tonnes per annum.
