38.6c New Delhi, India, Sunday, August 24, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Business

SC recalls May 2 judgment scrapping JSW Steel's resolution plan for Bhushan Power and Steel Ltd

By Harshvardhan Sharma      01 August, 2025 11:13 AM      0 Comments
SC recalls May 2 judgment scrapping JSW Steels resolution plan for Bhushan Power and Steel Ltd

NEW DELHI: The Supreme Court on Thursday recalled its May 2, 2025 judgment which has ordered liquidation of M/s Bhushan Power and Steel Limited, and rejected a resolution plan by JSW Steel for the debt-ridden company.

A bench of Chief Justice of India B R Gavai and Justice Satish Chandra Sharma decided to examine the issues, arising in the matter, afresh by allowing the review petitions against the judgment authored by Justice Bela M Trivedi (since retired).

Acting upon review petitions filed by JSW Steel and lenders of BPSL, Punjab National Bank, State Bank of India and others, the bench said, "We are prima facie of the view that the impugned judgement does not correctly consider the legal position as has been laid down by a catena of judgements".

The bench found that this is a fit case wherein the judgment under review needs to be recalled and the matter needs to be considered afresh.

"While we are allowing the review, we keep all the questions available to both parties open to be argued at the stage of hearing," the bench said.

The court said a three-judge bench would consider the matter on August 7.

The court also noted that the investment of nearly Rs 20,000 Crores made by JSW Steel as well as the livelihood of about 25,000 workers, need to be taken into account.

"25,000 people cannot be thrown on to the road. Article 142 of the Constitution has to be utilised to do complete justice not to do injustice," the bench said.

Senior advocate Neeraj Kishan Kaul, appearing for JSW Steel, submitted that the judgment would have devastating effect on the IBC. A successful resolution applicant which invested almost Rs 30,000 crores in equity, was now fighting this litigation, he said.

Solicitor General Tushar Mehta for the Committee of Creditors contended violation of the timeline was not so fatal that a successfully implemented plan can be set aside and a direction can be issued under 142 to liquidate a company.

The petitioners sought review of the judgment, which found Rs 19,300 Cr resolution plan of the BPSL, was not in conformity with the provisions of the Insolvency and Bankruptcy Code, 2016.

It is very rare occasion for the Supreme Court to review its own judgements on the basis of "error apparent on the face of records".

In its May 2, 2025 judgment, a bench of Justices Trivedi (since retired) and Sharma had set aside the resolution plan of JSW Steel.

On May 26, 2025, a bench led by Justice B V Nagarathna, however, had ordered status quo on the liquidation proceedings pending before the National Company Law Tribunal, as the time for filing the review petition for the aggrieved party had not elapsed then.

In its May 2, 2025 judgment, the court had invoked jurisdiction conferred under Article 142 of the Constitution and directed the adjudicating authority i.e. the National Company Law Tribunal to initiate the liquidation proceedings against the corporate debtor-BPSL under Chapter III of the IBC and in accordance with law.

The bench had held JSW Steel did not implement the resolution plan for about two years since its approval by the NCLAT, though there was no legal impediment in implementing it.

"Such flagrant violation of the terms of the resolution plan, has frustrated the very object and purpose of the Code," the bench said.

The court had also noted the mala fide and dishonest intention on the part of JSW, Steel in firstly securing highest score making before CoC and then not implementing the same under the garb of pendency of proceedings, though the resolution plan was supposed to be an unconditional one.

"In our opinion, nobody should be permitted to misuse the process of law nor should be permitted to take undue advantage of the pendency of any proceedings in any Court or Tribunal," the bench said.

The court pointed out, the resolution plan, after its approval by the adjudicating authority i.e. NCLT under Section 31, is binding not only to the corporate debtor, its employees, members, creditors and the Government authorities but also to all the stakeholders including the successful resolution applicant itself.

The court had then set aside the judgments and orders of September 05, 2019 and February 17, 2020 passed by the NCLT and NCLAT respectively.  



Share this article:

About:

Advocate Harshvardhan Sharma, founder and Editor-in-Chief of LawStreet Journal, is an award-winning ...Read more

Follow:
FacebookTwitterLinkedinInstagram


Leave a feedback about this
Related Posts
View All

Another CBI Officer Investigating Rakesh Asthana Moves SC Against Transfer, Makes Startling Revelations Another CBI Officer Investigating Rakesh Asthana Moves SC Against Transfer, Makes Startling Revelations

After A.K. Bassi, another CBI officer who was investigating corruption allegations against Special Director Rakesh Asthana moved the Supreme Court.

Ayodhya verdict: SC rules in favour of Ram Lalla, Sunni Waqf Board gets alternate land Ayodhya verdict: SC rules in favour of Ram Lalla, Sunni Waqf Board gets alternate land

SC bench led by CJI Ranjan Gogoi has allotted the dispute site to Ram Janmabhoomi Nyas, while directing the government to allot an alternate 5 acre land within Ayodhya to Sunni Waqf Board to build a mosque.

Supreme Court: Money Spent On Judiciary Less Than 1% In All States Except Delhi Supreme Court: Money Spent On Judiciary Less Than 1% In All States Except Delhi

The court guided all states to document their response to the commission's report within four weeks. If any of the states fail to file a response, it will be presumed that they have no objections to the recommendations made by the commission, the court said.

Supreme Court Top Panel Names Chief Justices for Bombay, Orissa and Meghalaya High Courts Supreme Court Top Panel Names Chief Justices for Bombay, Orissa and Meghalaya High Courts

On April 18, 2020, the Supreme Court Collegium recommended new Chief Justices for three High Courts. Justice Dipankar Datta was proposed as Chief Justice of the Bombay High Court, succeeding Justice B.P. Dharmadhikari. Justice Biswanath Somadder was nominated as Chief Justice of Meghalaya High Court, while Justice Mohammad Rafiq was recommended for transfer as Chief Justice of Orissa High Court.

TRENDING NEWS

adult-woman-free-to-live-with-married-man-personal-autonomy-prevails-over-morality
Trending Judiciary
Adult Woman Free To Live With Married Man, Personal Autonomy Prevails Over Morality: Madhya Pradesh HC [Read Order]

Adult woman has right to live with married man, rules MP High Court; says personal autonomy outweighs moral concerns.

23 August, 2025 04:00 PM
sc-issues-notice-to-bci-on-plea-against-3-yr-moratorium-on-new-centre-for-legal-education
Trending Judiciary
SC issues notice to BCI on plea against 3-yr moratorium on new centre for legal education

SC issues notice to BCI on plea challenging 3-year moratorium on new legal education centres, calling it arbitrary and violative of fundamental rights.

23 August, 2025 05:13 PM

TOP STORIES

sc-dismisses-plea-against-quashing-fir-in-case-of-suicide
Trending Judiciary
SC dismisses plea against quashing FIR in case of suicide of then MP Mohan Delkar

SC dismisses plea against quashing of FIR in ex-MP Mohan Delkar suicide case; Bombay HC’s 2022 order stands, no interference by Supreme Court.

18 August, 2025 12:21 PM
no-automatic-arrest-on-rejection-of-anticipatory-bail-supreme-court
Trending Judiciary
No Automatic Arrest on Rejection of Anticipatory Bail: Supreme Court [Read Order]

SC clarifies that rejection of anticipatory bail doesn’t mean automatic arrest; custody depends on investigation, conduct, and case facts.

18 August, 2025 12:27 PM
court-holds-surgeon-guilty-of-indulging-in-black-magic-during-hearing-sentenced-till-rising-of-court
Trending Judiciary
Court holds Surgeon guilty of indulging in black magic during hearing; sentenced till rising of court [Read Order]

Delhi court convicts surgeon for disrupting proceedings with ‘black magic’; sentenced till rising of court with ₹2,000 fine after apology.

18 August, 2025 12:40 PM
want-bravehearts-to-be-in-forces-sc-for-giving-insurance-cover-to-cadets-discharged-during-military-training
Trending Judiciary
'Want bravehearts to be in forces,' SC for giving insurance cover to cadets discharged during military training

SC seeks insurance cover, rehab and higher aid for cadets injured during military training, stressing need to support bravehearts joining armed forces.

18 August, 2025 04:00 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email