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2d ago

Supreme Court Recalls Liquidation Order Against Bhushan Power & Steel, Admits JSW Steel’s Review

Liquidation proceedings remain stayed pending a fresh hearing of JSW’s review petitions on August 7.

The apex court’s Thursday decision also comes as a relief to lenders, including State Bank of India and Punjab National Bank, which filed separate review petitions supporting JSW Steel’s position. The May ruling ordered the banks to return ₹19,350 crore paid by JSW Steel (HT File)
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Overview

  • The Supreme Court formally recalled its May 2 decision that had quashed JSW Steel’s resolution plan and ordered Bhushan Power & Steel’s liquidation under the IBC.
  • The court admitted JSW Steel’s review petitions challenging the cancellation of its ₹19,700 crore resolution plan; all liquidation proceedings have been stayed.
  • The bench concluded that the earlier judgment had potentially misapplied key legal precedents by considering arguments not previously advanced, prompting a fresh hearing.
  • A fresh hearing is set for August 7 to reargue issues of procedural compliance, creditor commercial wisdom and the boundaries of judicial oversight in IBC cases.
  • Observing that around 25,000 workers depend on Bhushan Power & Steel, the court emphasized balancing strict IBC timelines with the broader objective of corporate revival.