NCLT Postpones Bhushan Power & Steel Insolvency Case to May 30

The National Company Law Tribunal (NCLT) on Tuesday postponed the insolvency case of Bhushan Power & Steel Ltd (BPSL) to May 30, when it is likely to issue directions on a petition submitted by former promoter Sanjay Singal.

This comes following a request by Solicitor General Tushar Mehta, who represents the union government and various stakeholders. He requested the bench to allow Singal to identify and implead all necessary parties before the matter is formally heard.

“Let him (Singal) consider whom he would wish to join, or who are necessary parties before even notice is issued, and thereafter we can issue,” Mehta told the bench.

The NCLT’s principal bench, headed by Justice R. Sudhakar, accepted Mehta’s argument and instructed Singal’s counsel to include all relevant stakeholders in the case before the next hearing.

"So all of you should think over it. Yes. We just can't take a decision.” the bench said.

Mehta said that involved parties are considering various legal options in response to the Apex Court’s ruling, which also includes fresh Corporate Insolvency Resolution Process (CIRP) for BPSL.

He added, “Every option is under consideration because this will have to be clarified by the Honourable Court,” Mehta said. “We may even persuade the Court to initiate a fresh CIRP process because the ultimate object of the IBC is to preserve the company as a going concern. Liquidation is the ultimate death.”

Notably, Singhal’s counsel requested the tribunal to appoint an authority to take charge of the company’s assets, citing concerns over possible misuse or diversion. “Someone must be appointed to take control of the assets to prevent siphoning,” the counsel submitted.

The Reserve Bank of India in 2017 identified BPSL among the 12 large defaulters under the Insolvency and Bankruptcy Code. BPSL owes ₹47,200 crore to the lenders.