SC overturning order in Bhushan Steel case a course correction for IBC: Experts

The Supreme Court judgment overturning its previous order for liquidation of Bhushan Power and Steel on Friday is being seen by experts as a much-needed course correction for the Insolvency and Bankruptcy Code (IBC).

- RUCHIKA CHITRAVANSHI

According to them, it has brought certainty and underscored the legislative intent of the law. IBC experts said the apex court’s order would also improve investor appetite and recovery for creditors,

“The Supreme Court’s decision in the JSW-Bhushan Steel matter signals a maturing of the IBC as a statute moving it closer to its legislative intent of providing speed, certainty, and finality in resolution... Buyers can now step in without the shadow of unpredictable litigation undermining commercial viability,” said Sonam Chandwani, managing partner, KS Legal & Associates.

The court order stressed that “..the dominant purpose of the IBC is to resort to the liquidation proceedings as the last option.”