Supreme Court Nullifies JSW Steel's Bid for Bhushan Steel

The Supreme Court overturned JSW Steel's resolution plan for Bhushan Steel and Power Limited, citing violations of the Insolvency and Bankruptcy Code (IBC). Criticizing the involved parties, including the Committee of Creditors, for procedural lapses, the court ordered liquidation of BSPL and set aside previous judgments by the NCLT and NCLAT.

The Supreme Court delivered a landmark judgment on Friday, invalidating JSW Steel Limited's resolution plan for Bhushan Steel and Power Limited (BSPL), declaring it non-compliant with the Insolvency and Bankruptcy Code (IBC). This decision, delivered by a bench consisting of Justices Bela M Trivedi and Satish Chandra Sharma, mandates the liquidation of BSPL under IBC regulations.

The court emphasized its disapproval of the actions taken by various stakeholders, including the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT), citing them for enabling a 'flagrant violation' of IBC mandates. Justice Trivedi's comprehensive judgment critiqued JSW Steel for procedural omissions that disregarded the IBC's core objectives.

In an assertive ruling, the judgment noted the CoC's failure in exercising its commercial discretion while approving JSW's plan, which bypassed mandatory IBC provisions. It also highlighted that the CoC accepted payments from JSW without objection, undermining creditors' interests. The Supreme Court subsequently nullified earlier NCLT and NCLAT orders, directing liquidation proceedings against BSPL to commence.

(With inputs from agencies.)