SC Admits Review Pleas on JSW-BPSL Verdict
The court said it will hear on Thursday, in an open court, various petitions filed by JSW Steel and lenders of Bhushan Power, including State Bank of India and Punjab National Bank, seeking review of the top court ruling that rejected JSW Steel's ₹19,300-crore resolution plan for BPSL after four years of acquisition, citing non-compliance with Insolvency and Bankruptcy Code (IBC) rules.
A bench of Chief Justice B.R. Gavai and Justice Satish Chandra Sharma also sought response from BPSL creditor Kalyani Transco, Enforcement Directorate, BPSL's former promoter, and others on various review petitions."Applications for listing review petitions in open court and applications for oral hearing are allowed. Issue notice. List these matters on Jul. 31, at 1500 IST," the brief order stated. However, a bench led by Justice Sanjay Kumar will hear on August 1, original promoter Sanjay Singhal's application seeking appointment of an administer for BPSL.
JSW Steel, which had warned that the liquidation will be "fatal" to it and other stakeholders, including lenders and workers, had asked for an open court hearing in the Supreme Court.The apex court had on May 26 ordered status quo on the liquidation proceedings of bankrupt BPSL and said the order would be in force till it decides the review petition filed by JSW Steel.Supporting JSW, the lenders too said JSW's resolution plan was successfully implemented by March 2021 with an upfront payment of ₹19,350 crore. The banks said the May 2 judgment suffered from patent errors on the face of the record.The May 2 ruling had annulled JSW Steel's acquisition of BPSL on grounds that the resolution plan was "illegal" and "in gross violation" of IBC rules. While directing the National Company Law Tribunal (NCLT) to initiate liquidation proceedings against BPSL, the court had ruled that payments made to financial and operational creditors and JSW Steel's equity contribution be refunded within two months, as undertaken by the lenders, to the bankrupt steelmaker.
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