The Supreme Court on Thursday withdrew its earlier judgment from May 2 that had directed the liquidation of Bhushan Steel and Power Limited (BSPL).
The previous ruling had invalidated the resolution plan put forward by JSW Steel Limited, citing violations of the Insolvency and Bankruptcy Code (IBC).
Review Petitions To Be Heard Anew
A bench consisting of Chief Justice B R Gavai and Justice Satish Chandra Sharma took up a batch of review petitions related to the case. The judges expressed concerns that the earlier verdict had not adequately addressed the applicable legal principles established by prior case law.
The bench stated, “We find that the impugned judgment failed to correctly consider the legal position as set out in a series of precedents. Moreover, it appears the judgment considered certain factual matters and arguments not originally presented, though this is contested.”
Given these reasons, the Court deemed it appropriate to recall the previous ruling and ordered that the case be re-examined. The fresh hearing is scheduled for next Thursday.
Context
The May 2 judgment, delivered by a bench led by Justice Bela M Trivedi, now retired, had overturned JSW Steel’s plan to acquire BSPL.
The court sharply criticized the behavior of all parties involved in the insolvency resolution, including the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT), describing their conduct as a “blatant breach” of the IBC’s provisions.
Earlier, this verdict highlighted serious concerns about how the insolvency process was managed, leading to the Court’s initial decision to push for liquidation instead of resolution.
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