Supreme Court Re-examines Bhushan Steel Liquidation Verdict

The Supreme Court has recalled its earlier decision ordering the liquidation of Bhushan Steel and Power Limited. The court acknowledged that previous judgments incorrectly considered the legal framework and led to a need for afresh hearing. Key stakeholders in the resolution process faced criticism for IBC violations.

The Supreme Court on Thursday reversed its earlier decision from May 2, which mandated the liquidation of Bhushan Steel and Power Limited (BSPL).

This comes after the court invalidated a resolution plan submitted by JSW Steel Limited, which was previously declared illegal and in breach of the Insolvency and Bankruptcy Code (IBC).

Chief Justice B R Gavai and Justice Satish Chandra Sharma emphasized that the initial judgment did not adequately assess the legal context, warranting a fresh hearing on disputed factual and legal arguments.