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Kalyani Transco v. Bhushan Power & Steel Landmark IBC Jurisprudence on Resolution Plans
M & A Critique
|October 2025
The recent Supreme Court judgment in Kalyani Transco v. Bhushan Power & Steel Ltd. (26 September 2025) - a landmark decision under the Insolvency and Bankruptcy Code, 2016 (IBC) holds significant implications for resolution professionals, lenders, investors, and legal advisors engaged in insolvency and restructuring matters.
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We shall run through the highlights of the Supreme Court's decision.
Background and Context
Bhushan Power & Steel Ltd. (BPSL), one of India's leading steel manufacturers, entered the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).
JSW Steel was selected as the successful resolution applicant with a bid of approximately ₹19,000 crore. The Committee of Creditors (CoC) approved the plan, which was subsequently confirmed by the NCLT and modified by the NCLAT.
However, multiple appeals were filed – notably by Kalyani Transco—challenging
a) the delay in the plan implementation.
b) treatment of profits accrued during the CIRP, and
c) extinguishment of pre-CIRP claims not included in the plan.
This story is from the October 2025 edition of M & A Critique.
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