Latest news with #Article142
Time of India
3 hours ago
- Business
- Time of India
SC recalls own order directing liquidation of Bhushan Steel
NEW DELHI: In a dramatic yet decisive reversal, Supreme Court Thursday annulled its May 2 judgment ordering liquidation of Bhushan Power and Steel Ltd, which had been revived in 2021 by the Sajjan Jindal-led JSW through a Rs 20,000 crore plan concurrently upheld by NCLT and NCLAT under Insolvency and Bankruptcy Code process. Unabashedly admitting that its earlier decision militated against the settled law on inviolability of the decision of Committee of Creditors, a bench of CJI B R Gavai and Justice Satish Chandra Sharma recalled the verdict and posted the matter for fresh hearing next Thursday. The bench also frowned upon the use of Article 142 by the earlier bench led by Justice Bela M Trivedi, who has since retired, to order liquidation of the revived company despite it being in the pink of health. "Powers of Article 142 are meant to do complete justice and not cause injustice to 25,000 employees," the apex court said Thursday. SC's role in IBC proceedings limited, says CJI In an open court hearing on the review petitions filed by Punjab National Bank, the lead creditor for bankrupt Bhushan Power and Steel Ltd, and JSW, solicitor general Tushar Mehta and senior advocate Neeraj Kishan Kaul told a bench of CJI BR Gavai and Justice Satish Chandra Sharma that IBC proceedings aim to revive sick companies and liquidation is only the last resort. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mini House for 60 sqm for Seniors with Toilet and Bath (Price May Surprise You) Pre Fabricated Homes | Search Ads Search Now Undo The CJI said he has, as an SC judge, authored many judgments crystallising disparate rulings on IBC proceedings to lay down the cardinal principle that concurrent approval by NCLT and NCLAT of a revival plan accepted by the CoC cannot be interfered with by SC unless the petitioner challlenging it establishes a perversity. The verdict in the Bhushan Steel and Power Ltd case appears to be in the teeth of SC rulings. Mehta said IBC proceedings were followed to the T and it was the decision of the CoC to approve the revival plan of successful resolution professional, which was concurrently upheld by National Company Law Tribunal (NCLT) and the appellate tribunal (NCLAT) leaving little scope for SC interference. "Liquidating a viable and profit-making entity will be in the interest of none and would create many difficulties for the creditors as well as the successful resolution applicant," he argued. Kaul said JSW has infused an additional Rs 8,000 crore apart from the Rs 20,000 crore, and the company is now in robust health nearly tripling its productions. It now employs 25,000 people in the revived plant. On May 26, a bench of Justices B V Nagarathna and Sharma had stayed the liquidation process and ordered status quo after learning that petitions seeking review of the May 2 judgment are pending consideration.
Time of India
14 hours ago
- Business
- Time of India
SC recalls order cancelling JSW's ₹19,300 crore Bhushan Power resolution plan
Advt Advt Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. The Supreme Court on Thursday recalled its May 2 judgment that had cancelled the ₹19,300 crore resolution plan submitted by JSW Steel for Bhushan Power and Steel Ltd (BPSL), calling it a fit case for 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 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 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 the SC to relook into the issue, the SG argued that BPSL went into a serious financial crisis because of the money default by its former promoter and the debt-laden company, which was subsequently taken over by JSW, is now a healthy company. But the apex court in May 2 judgment exercised its jurisdiction under Article 142 and passed the direction that BPSL should go into 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.'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 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.'The top court agreed and listed the matter for detailed hearing next Thursday, keeping all questions Embeds (0)
Economic Times
15 hours ago
- Business
- Economic Times
SC recalls order cancelling JSW's Rs 19,300 cr Bhushan Power resolution plan; Fresh hearing on Aug 7
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. ADVERTISEMENT '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 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. (You can now subscribe to our Economic Times WhatsApp channel)
Time of India
15 hours ago
- Business
- Time of India
SC recalls order cancelling JSW's Rs 19,300 cr Bhushan Power resolution plan; Fresh hearing on Aug 7
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. 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. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science Public Policy CXO Leadership Healthcare Cybersecurity Project Management MBA Operations Management Technology others Digital Marketing Product Management Finance PGDM Others Data Science Management Degree Artificial Intelligence Skills you'll gain: Data Analysis & Interpretation Programming Proficiency Problem-Solving Skills Machine Learning & Artificial Intelligence Duration: 24 Months Vellore Institute of Technology VIT MSc in Data Science Starts on Aug 14, 2024 Get Details 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. Live Events 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. Asking the SC to relook into the issue, the SG argued that BPSL went into a serious financial crisis because of the money default by its former promoter and the debt-laden company, which was subsequently taken over by JSW, is now a healthy company. But the apex court in May 2 judgment exercised its jurisdiction under Article 142 and passed the direction that BPSL should go into liquidation. 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.' 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.' The top court agreed and listed the matter for detailed hearing next Thursday, keeping all questions open.
Hindustan Times
2 days ago
- Hindustan Times
Nitish Katara murder: SC allows release of one convict, extends interim bail to another
The Supreme Court on Tuesday ordered the release of Nitish Katara murder convict Sukhdev Pehelwan on completing 20 years of his life-term sentence, without any remission, even as the court, in a separate proceeding, dismissed a plea by another convict, Vikas Yadav, who challenged the 25-year bar on remission imposed as punishment for the crime committed in 2002. The Supreme Court of India. (Representative photo) In his petition, Pehelwan sought release, contending that the judgment of the top court convicting him in October 2016 had imposed a fixed-term sentence of 20 years without remission. A bench of justices BV Nagarathna and KV Vishwanathan accepted the argument and held that as per the 2016 decision, the 20-year sentence ended in March. 'In these circumstances, he is entitled to release…He shall be released forthwith if not wanted in any other case,' the court said in its order. The contentions of senior advocate Siddharth Mridul, representing Pehelwan, were challenged by the Delhi government, represented by additional solicitor general (ASG) Archana Pathak Dave, who said that the judgment only says that he would be eligible to be considered for remission after a 20-year sentence. She said that the life sentence will continue as a punishment in his case. The bench said, 'Once court has quantified a sentence without remission for 20 years, there is no sentence beyond 20 years.' The ASG pointed out that the Sentence Review Board (SRB) has considered his case for remission and dismissed it on March 28, on the grounds that he has 'potential for committing crime.' The bench took exception to the SRB order and said, 'How can SRB sit over judgment of this court? Once a convict has completed a sentence, he is entitled to release. You are mixing it up with remission... If this is the attitude of the government, then every convict will die in jail even if he has completed the sentence.' Meanwhile, another bench of the Supreme Court dismissed Vikas Yadav's petition questioning how the top court could direct him to remain in jail for a period of 25 years without remission. He had approached the top court in 2022, after he had undergone an actual sentence of 21 years. Dismissing his plea, a bench of justices MM Sundresh and N Kotiswar Singh said, 'We are not inclined to exercise our power under Article 142. The petition is dismissed, giving liberty to the petitioner to approach the high court.' The court had earlier granted interim bail to Yadav, who is the son of former member of Parliament DP Yadav. Senior advocate Guru Krishnakumar, appearing for Yadav, requested the court to continue his interim bail for a further period of six weeks as the period of bail expired on Tuesday. The court extended it by another four weeks, while observing that he was free to seek further orders from the high court. The case pertains to the abduction of Katara from a marriage party on the intervening night of February 16 and 17, 2002, and then killing him over his alleged relationship with Bharti Yadav, Vikas's sister. The accused in the case are Vikas Yadav, his cousin Vishal and Pehelwan. The decision of the top court in Pehelwan's case may come to the aid of VIkas and Vishal, who are set to complete the stipulated 25-year sentence in two years.
