Rare Recall: SC will Again Hear JSW-BPSL Case

Time of India

6 days ago

The
Supreme Court
Thursday recalled its May 2 judgment that scrapped
JSW Steel
's acquisition of Bhushan Power & Steel Ltd (BPSL) and ordered its liquidation, giving interim relief to the Sajjan Jindal-led company that claims to have infused Rs 30,000 crore to turn around the bankrupt steelmaker.
A bench led by Chief Justice BR Gavai allowed the review pleas filed by JSW Steel and BPSL's lenders, including
State Bank of India
and
Punjab National Bank
, and posted the petitions for a detailed hearing on August 7.
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While it is rare for the top court to reconsider its orders, a bench that also includes Justice Satish Chandra Sharma said this 'is a fit case' where the judgment 'needs to be recalled and the matter is to be considered afresh'.
'Prima facie, we are of the view that the impugned judgment does not correctly consider the legal position as has been laid down in the catena of judgments,' the bench said. It also noted the contention of the petitioners that the previous judgment had considered various incorrect factual aspects.
'We are inclined to allow the review. We won't look into any documents, just the judgment itself,' Justice Gavai said.
Another bench of Justices Bela M Trivedi and Satish Chandra Sharma had on May 2 scrapped JSW Steel's acquisition of BPSL, four years after the transaction was closed, holding that the steelmaker's Rs 19,700 crore resolution proposal was 'illegal' and 'in gross violation' of the
Insolvency and Bankruptcy Code
. It termed JSW's intention 'mala fide and dishonest', saying that the company took undue advantage of pending
Enforcement Directorate
proceedings and did not implement its plan for two years. Justice Trivedi has since retired.
After JSW sought a review of the order, SC on May 26 ordered status quo on the liquidation proceedings till it decided the
review petition
. The lenders too approached the court with a similar review plea.