+
 Supreme Court Clears JSW Steel’s Rs 197 Billion BPSL Plan
Steel

Supreme Court Clears JSW Steel’s Rs 197 Billion BPSL Plan

 The Supreme Court on 26 September overturned its own earlier ruling and approved JSW Steel’s Rs 197 billion resolution plan for Bhushan Power & Steel Ltd (BPSL), dismissing objections raised by the company’s former promoters and certain creditors.
A bench led by Chief Justice of India BR Gavai re-heard the case after recalling its May judgment that had rejected the plan. The court also dismissed pleas by Bhushan Power’s lenders seeking a share in the company’s EBITDA and claims of Rs 35.7 billion in earnings and Rs 25 billion in delay-related interest.
The bench, also comprising Justices Satish Chandra Sharma and K Vinod Chandran, ruled that a successful resolution applicant (SRA) cannot be forced to honour claims outside the request for resolution plan (RfRP) under Section 25 of the Insolvency and Bankruptcy Code (IBC).
The court observed that JSW Steel had revived BPSL through heavy investment in modernisation and by preserving thousands of jobs, achieving the IBC’s purpose of transforming a loss-making entity into a profitable one.
On 2 May, a bench led by Justice Bela M Trivedi had ordered liquidation of BPSL while rejecting JSW Steel’s plan. However, on 31 July, the CJI-led bench recalled that verdict, criticising the conduct of the committee of creditors, the resolution professional and the National Company Law Tribunal (NCLT) for what it termed serious breaches of the IBC process.
The resolution had faced significant delays, with payments to financial creditors overdue by 540 days and to operational creditors by over 900 days. Insolvency proceedings against BPSL began in 2017 on a petition by Punjab National Bank, with JSW Steel’s plan first approved by the NCLT in 2019.
At 11 am on 26 September, JSW Steel’s shares traded 0.4 per cent higher at Rs 1,154 apiece.
 

 The Supreme Court on 26 September overturned its own earlier ruling and approved JSW Steel’s Rs 197 billion resolution plan for Bhushan Power & Steel Ltd (BPSL), dismissing objections raised by the company’s former promoters and certain creditors.A bench led by Chief Justice of India BR Gavai re-heard the case after recalling its May judgment that had rejected the plan. The court also dismissed pleas by Bhushan Power’s lenders seeking a share in the company’s EBITDA and claims of Rs 35.7 billion in earnings and Rs 25 billion in delay-related interest.The bench, also comprising Justices Satish Chandra Sharma and K Vinod Chandran, ruled that a successful resolution applicant (SRA) cannot be forced to honour claims outside the request for resolution plan (RfRP) under Section 25 of the Insolvency and Bankruptcy Code (IBC).The court observed that JSW Steel had revived BPSL through heavy investment in modernisation and by preserving thousands of jobs, achieving the IBC’s purpose of transforming a loss-making entity into a profitable one.On 2 May, a bench led by Justice Bela M Trivedi had ordered liquidation of BPSL while rejecting JSW Steel’s plan. However, on 31 July, the CJI-led bench recalled that verdict, criticising the conduct of the committee of creditors, the resolution professional and the National Company Law Tribunal (NCLT) for what it termed serious breaches of the IBC process.The resolution had faced significant delays, with payments to financial creditors overdue by 540 days and to operational creditors by over 900 days. Insolvency proceedings against BPSL began in 2017 on a petition by Punjab National Bank, with JSW Steel’s plan first approved by the NCLT in 2019.At 11 am on 26 September, JSW Steel’s shares traded 0.4 per cent higher at Rs 1,154 apiece. 

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code