Supreme Court Reverses Controversial Verdict on Bhushan Power & Steel Liquidation

The Supreme Court set aside its earlier verdict, reversing the order for Bhushan Power & Steel Limited's liquidation. The bench found that previous legal positions were not correctly considered in the May 2 judgment. The court emphasized the need to protect 25,000 jobs and reconsider factual aspects.

In a pivotal move, the Supreme Court has retracted its contentious judgment from May 2, which had mandated the liquidation of Bhushan Power & Steel Limited (BPSL) and annulled a resolution plan by JSW Steel Limited.

Chief Justice B R Gavai and Justice Satish Chandra Sharma noted the earlier decision by the retired Justice Bela M Trivedi misjudged legal precedents and ignored crucial factual matters. By revisiting the case, the court aims to address the fates of 25,000 employees affected by the decision.

Representatives from JSW highlighted the plan's endorsement by 97.75% of creditors and its full implementation. Concerns were raised over commercial wisdom interference, emphasizing the necessity to safeguard the revival of BPSL and its substantial workforce.

(With inputs from agencies.)