JSW Steel has approached the Supreme Court in search of a review of its May 2 judgment, which rejected the decision plan submitted by the corporate for Bhushan Power and Steel Ltd. (BPSL) and directed the initiation of liquidation proceedings.
Also Read | NCLT defers listening to on Bhushan Power and Steel case, submit SC establishment order on liquidation proceedings
The high court docket had subsequently, on May 26, ordered establishment within the ongoing liquidation course of earlier than the National Company Law Tribunal (NCLT), granting JSW Steel time to file a review petition. The Bench had noticed that establishment ought to prevail “in the interest of justice and to avoid future complications”.
JSW Steel, represented by senior advocate Neeraj Kishan Kaul, had argued that the matter was complicated and shouldn’t be rushed into liquidation. Mr. Kaul had submitted that BPSL had posted an annual turnover of ₹28,000 crore in a single yr and had elevated manufacturing capability from 2.5 to 4.5 metric tonnes. The firm, he famous, additionally employed roughly 25,000 staff.
In its May 2 verdict, the Supreme Court had discovered JSW’s decision plan to be in “flagrant violation and contravention” of the legislation. The Bench had held that the Resolution Professional “had utterly failed to discharge his statutory duties contemplated under the Insolvency and Bankruptcy Code (IBC) and the Corporate Insolvency Resolution Process (CIRP) Regulations” all through the proceedings regarding BPSL.
Invoking its powers below Article 142 of the Constitution, the court docket had directed the NCLT to start liquidation proceedings below the IBC framework.
The court docket had additionally criticised the Committee of Creditors (CoC) for approving the decision plan, observing that the CoC had didn’t train its industrial knowledge adequately. “The CoC had failed to protect the interest of the creditors by taking contradictory stands before this court, and accepting the payments from JSW without any demurrer, and supporting JSW to implement its ill-motivated plan against the interest of the creditors,” the court docket had famous.
The CoC, represented by Solicitor General Tushar Mehta, had additionally expressed its intention to file a review petition towards the May 2 determination.
