BPSL was one of the “dirty dozen” large corporate defaulters identified by the Reserve Bank of India (RBI) in 2017. Its CIRP commenced on July 26, 2017.
Key issues addressed
The Court addressed and ruled on several contentious issues raised primarily by the erstwhile promoters and a few Operational Creditors (OCs):
EBITDA distribution confirmed to stay with BPSL: The Supreme Court upheld the NCLAT’s decision that the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) generated by BPSL during the CIRP period would remain with the company. The court rejected the arguments for its distribution among creditors, noting that neither the Request for Resolution Plan (RfRP) nor the Resolution Plan itself provided…