JSW Steel’s legal battle over the Bhushan Power and Steel (BPSL) resolution continues, as the Supreme Court is set to hear the company’s review petition today.
The petition challenges the apex court’s May 2 verdict, which dismissed JSW Steel’s Rs 19,300 crore resolution plan for the acquisition of BPSL, reported Moneycontrol.
The case stems from a plea originally filed by Sanjay Singhal, former promoter of Bhushan Power, which resulted in the cancellation of JSW’s resolution plan.
The current review petition, which includes Singhal as a respondent, is being considered by a two-judge bench comprising Justices Satish Chandra Sharma and BV Nagarathna. Justice Nagarathna replaces Justice Bela M. Trivedi, who was on the earlier bench but has since retired.
JSW Requests Delay in Liquidation, Demands Refund from Lenders
In its plea, JSW Steel has urged the Supreme Court to postpone the liquidation process for a period of 60 days. The company is also pursuing reimbursement from lenders, having issued demand notices seeking a refund of payments it made under the now-invalidated resolution plan.
While JSW Steel seeks relief from the top court, a separate development is unfolding at the National Company Law Tribunal (NCLT). On Monday, the NCLT will hear another petition by Sanjay Singhal, who is calling for the immediate execution of the Supreme Court’s liquidation order. Singhal has argued that swift action is essential to safeguard BPSL’s assets from potential misuse or diversion.
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Ongoing Operations and ED Investigation Concerns
Despite the recent Supreme Court ruling, JSW Steel informed investors last week that it continues to maintain operational control over BPSL. The company stated that both production and deliveries are ongoing at the BPSL facility. This was communicated in response to investor inquiries about the potential implications of Enforcement Directorate (ED) actions.
The concern arose from the ED’s ongoing probe into alleged money laundering by BPSL’s previous promoters. With the Supreme Court’s recent observation highlighting lapses in the resolution plan, such as delays in creditor payments, industry experts believed that the ED could attempt to re-attach approximately Rs 4,000 crore worth of BPSL assets.
JSW’s continued assertion of control over BPSL is seen as a strategy to maintain stability at the company even as legal uncertainties mount.
