The Supreme Court on Friday issued orders for the liquidation of debt-ridden Bhushan Power and Steel Limited (BPSL), after rejecting the resolution plan worth Rs 9,700 crore, proposed by JSW Steel Limited.
Terming the resolution plan as unconstitutional, the Bench of Justice Bela Trivedi and Justice Satish Chandra Sharma ruled that the Committee of Creditors (CoC) erred in approving JSW Steel’s plan, in violation of the Insolvency and Bankruptcy Code (IBC).
JSW Steel had emerged as the successful resolution applicant for BPSL in 2019, after offering to pay over Rs 19,000 crore to financial creditors.
The National Company Law Tribunal (NCLT) approved the plan in September 2019.
Despite legal challenges, including…
