SC Quashes NCLAT Approval of JSW’s Bhushan Power Takeover Due to Legal Violations “Orders Liquidation”
The Supreme Court adjudicated on the validity of the National Company Law Appellate Tribunal’s approval of JSW’s resolution plan under the Insolvency and Bankruptcy Code, 2016. It addressed procedural compliance under Sections 29A, 30, and 61, overreach by NCLAT in modifying NCLT’s order, and jurisdictional limits concerning ED’s attachment powers under PMLA.
Facts Of The Case:
The insolvency resolution process for Bhushan Power and Steel Ltd. (BPSL) commenced on a petition filed by Punjab National Bank, admitted by NCLT on July 26, 2017. Interim Resolution Professionals invited claims, with financial creditors claiming over ₹47,000 crores and operational creditors over ₹600 crores. JSW Steel emerged as the successful resolution applicant after a multi-stage bid evaluation by the Committ...