Supreme Court Reassesses BPSL Liquidation amid Controversy

The Supreme Court begins a fresh hearing on a batch of appeals concerning its previous decision to liquidate Bhushan Power & Steel Limited (BPSL). The case raises issues about the resolution plan by JSW Steel and the locus standi of former BPSL promoters in challenging its provisions.

The Supreme Court has initiated a fresh hearing regarding its previous order to liquidate Bhushan Power & Steel Limited (BPSL), an action that nullified JSW Steel's resolution bid. This decision unfolds as a special bench including Chief Justice B R Gavai reexamines the legal complexities of the case.

Solicitor General Tushar Mehta, representing the committee of creditors, contended that the former promoters lacked standing in the proceedings, having significantly contributed to the company's downfall. He emphasized the resolution plan's approval by both the CoC and the National Company Law Tribunal (NCLT) and the inhering losses due to implementation delays.

Senior advocate Dhruv Mehta, defending the erstwhile promoters, asserted that operational profits gleaned during the insolvency process should benefit the creditors. The court's deliberations will address the viability of the CoC's resolution plan, the standing of former promoters, and the judgment's compliance with the Insolvency and Bankruptcy Code (IBC).

(With inputs from agencies.)