SC Halts Liquidation Process Against BPSL, Orders Status Quo

Decision comes after hearing petition filed by JSW Steel

- BHAVINI MISHRA

The Supreme Court on Monday halted the liquidation proceedings for Bhushan Power and Steel Ltd (BPSL) after hearing a petition filed by JSW Steel, whose resolution plan for BPSL was rejected by the top court on May 2.

The proceedings were going on before the National Company Law Tribunal (NCLT).

A Bench of Justice B V Nagarathna and Justice Satish Sharma ordered the status quo, considering that JSW's "limitation period" for filing a review of the Supreme Court's judgment was not over.

A "status quo order" is a legal directive issued by a court to maintain what exists in a matter until a final decision or resolution is reached.

The Bench observed liquidation might jeopardise the review petition to be filed by JSW. The general time limit in India for filing a review petition is 30 days from the date of the judgment or order.