In its May 2 judgment, a Bench of Justices Bela M Trivedi and Satish Chandra Sharma had held that the CoC erred in approving JSW Steel’s resolution plan for BPSL. The Court declared the plan illegal and ordered BPSL’s liquidation using its inherent powers under Article 142 of the Constitution of India.
JSW Steel, which had been selected as the successful resolution applicant in 2019, had offered over ₹19,000 crore to creditors. The plan was approved by the National Company Law Tribunal (NCLT) in September 2019 and upheld by the National Company Law Appellate Tribunal (NCLAT), even as the Enforcement Directorate (ED) challenged the plan on grounds of alleged money laundering by BPSL’s former promoters.
The May 2 ruling sent…