SC Recalls Verdict on Liquidation of Bhushan Power and Steel

Bench Set to Hear All Arguments on Aug 7

- BHAVINI MISHRA

The Supreme Court on Thursday recalled its May 2 judgment that declared JSW Steel Ltd's resolution plan for Bhushan Power & Steel Ltd (BPSL) "illegal" and ordered the latter's liquidation, four years after the company was acquired under the Insolvency and Bankruptcy Code (IBC).

A bench of Chief Justice of India (CJI) BR Gavai and Justice Satish Chandra Sharma allowed the review of the May 2 judgment and decided to hear the appeal filed by the BPSL promoter challenging the resolution plan afresh. The bench has agreed to hear all arguments on August 7.

"Prima facie, we are of the view that the impugned judgment does not correctly consider the legal position as has been laid down by a catena of judgments," the bench said.

"We, therefore, think that this is a fit case wherein the judgment under review needs to be recalled and the matter needs to be considered afresh. So, needless to say that while we are allowing the review, we keep all the questions available to both parties open to be argued at the stage of hearing," the bench said.

When the hearing started, the top court expressed its inclination to allow the review petition, as the judgment did not appear to be in line with settled precedents.