In the BPSL case, the figures were not insignificant. According to the RP’s affidavit, EBITDA exceeded ₹1,800 crore during the CIRP period. At various points, the Committee of Creditors (CoC) indicated that this sum should be distributed among creditors. JSW Steel, whose resolution plan was ultimately approved by the CoC, contended that EBITDA was simply an accounting figure and not profit available for distribution.
The National Company Law Tribunal (NCLT) sided with the creditors and ordered EBITDA to be treated as an asset. The National Company Law Appellate Tribunal (NCLAT) reversed this decision and permitted JSW Steel to remain in control. The matter then proceeded to the Supreme Court.
Initially, the Supreme Court rejected JSW…