BPSL

News, The Morning Context

Supreme Court temporarily halts Bhushan Power’s liquidation

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A two-judge bench of the Supreme Court on Monday temporarily stopped the liquidation of Bhushan Power and Steel Ltd (BPSL). This halts proceedings at the National Company Law Tribunal (NCLT) until at least June 2, which is JSW Steel’s deadline to file a review petition on the apex court’s May 2 verdict. The apex court had scrapped JSW Steel’s 2021 acquisition of the then-insolvent steelmaker under the Insolvency and Bankruptcy Code (IBC) and ordered BPSL’s liquidation. JSW argued that liquidation would jeopardize its intended review petition.

News, The Morning Context

SC scrapped Bhushan Power and Steel deal to protect IBC, not undermine it

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Every party in the acquisition of insolvent steelmaker Bhushan Power and Steel Ltd stretched the limits, including JSW Steel and the NCLT/NCLAT. The Supreme Court’s verdict cancelled the acquisition and ordered BPSL’s liquidation. The SC’s message is that the Insolvency and Bankruptcy Code (IBC) resolution process rules must be followed, and violations cannot be condoned. The ruling upholds the sanctity of the IBC framework, despite the cost to the acquirer, JSW Steel.

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