JUDGMENT OF THE HON'BLE APEX COURT IN BHUSHAN STEELA SHOCK OR A VOLCANIC ACTIVITY – PART I -

The judgment of the Hon’ble Supreme Court delivered by Justice Bela M Trivedi on 02 May 2025 just before her Ladyship’s retirement in the case of Kalyani Transco Vs Bhushan Power and Steel Limited, reported in 2025 SCC Online SC 1010, has caused a shock, while some would argue has caused a serious seismic activity.

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Having practiced in the field of Bankruptcy laws, I would believe that the judgment is also a plain speak on the functioning of the judicial system and the need for its reform. In my view, one cannot turn a blind eye to these observations if one does intend to improve the system. The fact that the Hon'ble Supreme Court has ordered status quo on the liquidation.

It is also a matter of coincidence that the Hon'ble Rajasthan High Court in the case of Umakant Sharma Vs State of Rajasthan & Others (SB Civil Writ Petition No 840/2025) in its judgment dated 27.05.2025 has made a pertinent observation which merits consideration even in the case of Tribunals/ Regulatory bodies that are tasked with the responsibilities of deciding matters that have serious repercussions especially where public interest is involved. The Hon'ble High Court was pleased to hold as under which is duly extracted:

“Before parting with this order, this Court is constrained to observe and take a judicial notice that in Revenue Courts the Presiding Officers are posted from the Administrative Services, who typically do not possess any legal background as they neither have studied law nor have undergone formal legal training. They have not gone through the procedural laws, such as the Civil Procedure Code, the Indian Evidence Act, or local statutes like the Rajasthan Tenancy Act, the Rajasthan Land Revenue Act, and other related land laws and Rules.