SC agrees to hear pleas for review of verdict on liquidation of Bhushan Steel

New Delhi, Jul 29 (PTI) The Supreme Court on Tuesday fixed July 31 for hearing pleas seeking a review of a May 2 verdict that set aside a resolution plan submitted by JSW Steel Limited for Bhushan Steel and Power Limited (BSPL), holding it illegal and in violation of the Insolvency and Bankruptcy Code (IBC).

A bench of Chief Justice B R Gavai and Justice Satish Chandra Sharma allowed an application for open-court hearing and fixed July 31 for hearing a batch of pleas seeking a review of the verdict.

"Application(s) for listing review petition(s) in open court and application for oral hearing are allowed. Issue notice. List these matters on July 31, 2025 at 3 pm," the bench ordered.

The court considered the review pleas in chambers by circulation and passed the order.

The former promoters of BSPL urged the top court on July 21 to accord an open-court hearing to their plea for a review of the May 2 verdict.

The former promoters of BSPL were Sanjay Singhal and his family, specifically including his father Brij Bhushan Singhal and brother Neeraj Singhal.

Legal firm Karanjawala and Co. said a review petition was also filed by JSW Steel Limited on June 25, along with the review petitions filed by the Committee of Creditors (CoC) and the resolution professional against the May 2 verdict.

The firm said the former directors had moved the National Company Law Tribunal (NCLT) for starting the process of liquidation for BPSL, without allowing JSW to exercise its proper legal remedies against the May 2 verdict.

It added that on May 26, on a special leave petition filed by JSW Steel Limited, the top court ordered status quo on the liquidation proceedings of BSPL and temporarily halted the proceedings before the NCLT till the disposal of the review petitions, which were to be filed by the aggrieved parties, including JSW.

The apex court ordered the liquidation of BSPL under the IBC on May 2 as it criticised the conduct of all key stakeholders in the resolution process -- the resolution professional, the CoC and the NCLT -- for enabling what it termed a "flagrant violation" of the IBC.

The top court criticised multiple stakeholders, including successful resolution applicant (SRA) JSW Steel Limited, for procedural lapses and a failure to uphold the objectives of the IBC.

"Having thoroughly examined the entire matter factually and legally, we arrive at the following irresistible conclusions: the resolution professional had utterly failed to discharge his statutory duties contemplated under the IBC and the CIRP regulations during the course of the entire CIR proceedings of the corporate debtor, BPSL," the verdict had said.

The top court had held that the CoC had failed to exercise its commercial wisdom while approving JSW's resolution plan, which was in absolute contravention of the mandatory provisions of the IBC and CIRP regulations. PTI MNL RC