In the case of Bhushan Power & Steel Limited (BPSL) v Union of India & Another (2025), Delhi High Court has held that once a resolution plan is approved and a change in management occurs, a corporate debtor cannot be prosecuted for offences committed prior to commencement of the Corporate Insolvency Resolution Process (CIRP).
The court was hearing a writ petition filed by BPSL, seeking to quash the enforcement directorate complaint.
Background
The Punjab National Bank initiated a CIRP against BPSL before the National Company Law Tribunal (NCLT). Sometime afterwards, the Central Bureau of Investigations registered criminal cases against BPSL for corruption, cheating and forgery. Subsequently, the Enforcement…
