The Court erred in holding its resolution plan as non-compliant with Sections 30(2) and 31(2) of the Insolvency and Bankruptcy Code, leading to an erroneous rejection of the plan, it has been stated.
The company has also alleged that there was a violation of principles of natural justice. According to the petition, JSW was not afforded an effective hearing on multiple key issues during the original proceedings.
One of the central grounds of challenge is that the Court invoked Article 142 of the Constitution to direct the liquidation of a solvent and profitable company. JSW has contended that this was contrary to settled law which holds that resolution must be preferred over liquidation when feasible.
The petition further argues that the…