Supreme Court Halts JSW Steel's Plan: Bhushan Steel Liquidation Ordered

The Supreme Court declared JSW Steel's resolution plan for Bhushan Steel and Power Ltd illegal, leading to BSPL's liquidation. It criticized the conduct of stakeholders involved in the process for violating the Insolvency and Bankruptcy Code. A detailed judgment is awaited.

The Supreme Court has condemned the resolution plan submitted by JSW Steel for Bhushan Steel and Power Ltd, deeming it illegal and contrary to the dictates of the Insolvency and Bankruptcy Code (IBC).

A bench, which included Justice Bela M Trivedi and Justice Satish Chandra Sharma, ordered the liquidation of BSPL under the IBC, rebuking key stakeholders such as the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT) for what it termed a 'flagrant violation' of the IBC.

The ruling pronounced by Justice Bela Trivedi faulted the resolution professional for not fulfilling statutory duties during the corporate insolvency resolution process. The CoC's approval of JSW's resolution plan was criticized for lacking due diligence, as it contravened mandatory IBC provisions, failed to safeguard creditors' interests, and accepted questionable payments from JSW.

(With inputs from agencies.)