North India Statesman
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News India Live, Digital Desk: The Supreme Court on Friday dismissed the bank of Bhushan Power and Steel Limited (BPSL) and dismissed the resolution scheme illegal, giving a major blow to JSW Steel. Also, the court has ordered to start the liquidation process of BPSL. The court stated against the objectives of the insolvency process (IBC) to take undue advantage of the pending action of the Enforcement Directorate (ED) on behalf of JSW Steel.
What did the Supreme Court say?
A bench headed by Justice Bela Trivedi said in its judgment:
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JSW Steel has severely violated the important rules of IBC (Insolvency and Recognition Disability Code) 2016.
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JSW Steel, Resolution Professional and Committee of Lenders (COC) have deliberately confused the court by giving false information.
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The resolution professional failed to discharge his legal and legal duties.
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The Committee of Lenders (COC) did not use its commercial discretion correctly, causing disturbances in the process.
The court made serious remarks, calling the JSW Steel and the antics of the concerned parties “dishonest and malicious”.
What was the matter?
JSW Steel offered ₹ 19,350 crore to financial lenders and ₹ 350 crore to operational creditors for the acquisition of Bhushan Power and Steel. The scheme was first approved by NCLT (National Company Law Tribunal) in 2019 and NCLAT (National Company Law Appellate Tribunal) in 2020. In February 2024, the Supreme Court also directed the ED to give BPSL ₹ 4,025 crore assets to JSW.
However, now the Supreme Court has rejected the plan as completely illegal, and has issued an order to put the company in liquidation.
JSW Steel shares fall drastically
Following the Supreme Court’s decision, JSW Steel’s stock market saw a sharp response on Friday. The company’s shares declined by about 5.76% and the price reached the level of ₹ 970.50.
