Supreme Court Overturns Its May Order, Greenlights JSW Steel’s Rs 19,700 Crore Resolution Plan for BPSL

The Supreme Court on Friday (26 September) overturned its earlier ruling and approved JSW Steel’s Rs 19,700-crore resolution plan for Bhushan Power & Steel (BPSL), dismissing objections from former promoters and some creditors, Moneycontrol reported.

The case was re-heard by a bench headed by Chief Justice of India B R Gavai after recalling the May verdict that had rejected the resolution plan.

The court also dismissed lenders’ requests to claim a share in BPSL’s earnings before interest, taxes, depreciation, and amortisation (EBITDA).

The apex Court ruled that the delay in implementing the plan was not attributable to its committee of creditors and successful resolution applicant JSW Steel Ltd.

"We have held that the delay is not attributable to CoC or SRA. They have been trying to sort it out and enforce the resolution plan. We have held that CCDs issued by SRA are to be treated as equity. Commercial wisdom cannot be interfered with...Once the resolution plan to be approved by CoC, permitting any claims to be reopened will amount to committing violence on provisions of law," the bench, also comprising Justices Satish Chandra Sharma and Vinod Chandran, said, Bar and Bench reported.

The CoC had sought Rs 3,569 crore from EBITDA and Rs 2,500 crore as delay-related interest, both of which were rejected by the court.

Earlier, on 2 May, a bench led by Justice Bela M Trivedi had ordered liquidation of BPSL, while setting aside a resolution plan of JSW Steel Limited for the ailing firm.

On 31 July, the bench headed by the CJI recalled the 2 May order that had directed liquidation of BPSL and set aside JSW's resolution plan, criticising the conduct of the CoC, the resolution professional, and the National Company Law Tribunal (NCLT) for what it termed a flagrant violation of the Insolvency and Bankruptcy Code (IBC).

Please click here to add Swarajya as your preferred and trusted news source on Google.

Also Read: India’s First Fleet Of Electric Heavy Trucks With Swappable Batteries Rolled Out At JNPA