38.6c New Delhi, India, Thursday, May 30, 2024

NCLAT Stays JSW Steel's Bhushan Power Buyout Till Jan 31

By LawStreet News Network      24 January, 2020 11:01 PM      0 Comments
NCLAT Stays JSW Steel's Bhushan Power Buyout Till Jan 31

National Company Law Appellate Tribunal has on January 23, 2020 adjourned the matter of Bhushan Power and Steel Ltd.’s sale to JSW Steel under the insolvency process and has given the Central Bureau of Investigation (CBI), the corporate affairs ministry and the Enforcement Directorate (ED) a last chance to address the question whether JSW Steel should be held liable for prosecution of offences committed by the erstwhile management of the debt-ridden Bhushan Power and Steel (BPSL). JSW was a successful resolution applicant for BPSL. 

ED had stalled the implementation of JSW Steel’s resolution plan on October 10, 2019 by attaching the assets of BPSL worth over Rs. 4,025 crores, in connection with its money laundering probe linked to an alleged bank loan fraud by its former promoters of BPSL.

Following is an excerpt from the judgment; 

By way of a last chance, we will give the corporate affairs ministry, ED, and CBI (opportunity) to address as to why the appeal may not be disposed of in terms of Section 32A as inserted by Section 10 of Insolvency and Bankruptcy Code amendment ordinance 2019.”

Interestingly, the new IBC amendment which was passed by the UnionGovernment in December, 2019 makes the new management of a company acquired under IBC immune from the offences committed by the former management if the new management is not a related party to the former management or under suspicion of being complicit in an offence committed by previous management.

Author: Parth Thummar



Share this article:

User Avatar

Leave a feedback about this

Trending Judiciary
AAP Minister Atishi summoned by Delhi Court in BJP defamation case, to appear on Jun 29

A Delhi Court has summoned Aam Aadmi Party (AAP) Minister Atishi in a defamation case by Bharatiya Janata Party (BJP) spokesperson Praveen Shankar Kapoor.

29 May, 2024 12:44 PM
Trending Judiciary
Sikkim High Court Announces Menstrual Leave for Female Employees [Read Order]

Sikkim High Court grants 2-3 days of menstrual leave monthly to female employees, requiring Medical Officer approval, without deducting from regular leave accounts.

29 May, 2024 01:15 PM


Trending Events & Opportunity
LIVE Coverage: In-Depth Exploration of Bhartiya Sakshya Adhiniyam (BSA) at DHCBA Lecture Series [Watch Live]

LIVE Coverage: DHCBA Lecture Series explores the Bhartiya Sakshya Adhiniyam (BSA), 2023 with Justice Bhambhani & Senior Advocate Jayant Mehta. Tune in at 5pm on LawStreet Journal!

24 May, 2024 11:30 AM
Trending Judiciary
BJP Moves Supreme Court Against Calcutta High Court's Ban on "Derogatory" Ads Targeting TMC

BJP moves Supreme Court against Calcutta High Court order banning "derogatory" ads targeting TMC during Lok Sabha elections, seeks urgent hearing.

24 May, 2024 12:12 PM
Trending Judiciary
Demand Notice via courier valid in cheque bounce cases: Allahabad High Court [Read Order]

Allahabad HC rules demand notices via courier valid for cheque bounce cases under Section 138 NI Act, but service presumption needs registered post amendment.

24 May, 2024 01:44 PM
Trending Judiciary
'Can't interrupt in between polls,' SC declines to consider plea for uploading voters turnout data

SC declines plea to upload voter turnout data during ongoing polls, citing the need to avoid interruptions and uphold electoral integrity, pending further examination.

24 May, 2024 02:06 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email