SC Puts Bhushan Steel Liquidation On Hold
JSW Steel has been allowed to file a review petition against the Supreme Court’s May 2 verdict that quashed its Rs 19,300 crore resolution plan, which had come as a major setback for the Sajjan Jindal-led company
SC Puts Bhushan Steel Liquidation On Hold
New Delhi: The Supreme Court on Monday ordered a status quo on the liquidation proceedings of Bhushan Power and Steel Ltd (BPSL), giving interim relief to JSW Steel. The verdict came on a plea filed by JSW Steel seeking a stay on the liquidation process initiated by BPSL’s former promoter, Sanjay Singhal.
JSW Steel has been allowed to file a review petition against the Supreme Court’s May 2 verdict that quashed its Rs 19,300 crore resolution plan, which had come as a major setback for the Sajjan Jindal-led company.
Sanjay Singhal, former promoter of the BPSL, had approached the NCLT seeking liquidation based on the Supreme Court’s earlier judgment.
The apex court had set aside the resolution plan on grounds of non-compliance with key provisions of the Insolvency and Bankruptcy Code (IBC), which included the failure to adhere strictly to the plan’s approved timeline. BPSL’s steel plant in Odisha has a capacity of 4.5 million tonnes per annum (MTPA), forming a key part of JSW Steel’s total domestic capacity of 34.2 MTPA.
