SC recalls order cancelling JSW's Rs 19,300 cr Bhushan Power resolution plan; Fresh hearing on Aug 7

Economic Times

a day ago

The Supreme Court on Thursday recalled its May 2 judgment that had cancelled the Rs 19,300 crore resolution plan submitted by JSW Steel for Bhushan Power and Steel Ltd (BPSL), calling it a fit case for review.
ADVERTISEMENT The court said all legal issues will be re-examined afresh and listed the matter for a full-fledged hearing on next Thursday, that is August 7.
The May 2 ruling had scrapped JSW Steel's acquisition of BPSL after four years on the grounds that the resolution plan was 'illegal' and 'in gross violation' of the Insolvency and Bankruptcy Code (IBC).
A Bench of Chief Justice BR Gavai and Justice Satish Chandra Sharma, while hearing five review petitions filed by JSW Steel, the resolution professional (RP), and lenders to BPSL, said the earlier judgment did not correctly consider the established legal position laid down in several past decisions. 'We are of the view that the impugned judgment doesn't correctly consider legal position that has been laid down by in a catena of judgments,' the court said in its order, keeping all issues open for arguments in the next hearing. Appearing for the lenders, Solicitor General Tushar Mehta showed the court a chart of what is the 'error apparent in the judgement.' He said that the judgment stated that this CoC did not exercise its commercial wisdom. However, the CJI said that the SC has consistently held that it is not open for this court or NCLT or NCLAT to sit in appeal over wisdom of the CoC.
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'This is a case where a company which went into a serious financial crisis because of the default of money by (former promoter) Sanjay Singhal and was taken over by JSW, and now it is a healthy company. But the apex court was pleased to exercise jurisdiction under Article 142 and directed that it should go into liquidation,' Mehta argued. CJI, at the start of the hearing, indicated the court's leaning and said, 'We will give a full-fledged hearing, but prima facie it appears that the view is not in consonance with earlier settled decisions.'
ADVERTISEMENT He also noted the practical consequences of the earlier order. 'We have to take into consideration ground realities. 25,000 people will be on roads,' the CJI said.Senior advocate Neeraj Kishan Kaul, appearing for the resolution professional, said, 'Look at the plight of the SRA (JSW) who has infused ₹30,000 crore and is now scuttled by a promoter. Do they have the locus to do so? This is a fit case for the Court to consider recalling and hear afresh.'
ADVERTISEMENT The top court agreed and listed the matter for detailed hearing next Thursday, keeping all questions open.
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