Insolvency Resolution
Bhushan Power lenders file review plea Vs SC order nixing JSW Steel IBC plan
This story was originally published at 06:00 IST on 17 June 2025
Register to read our real-time news.Informist, Monday, Jun. 16, 2025
NEW DELHI – Lenders of Bhushan Power & Steel Ltd., led by Punjab National Bank, Monday filed a review petition against the Supreme Court's verdict to quash JSW Steel Ltd.'s resolution plan for the debt-ridden company. This comes after the apex court had in May ordered status quo on the proceedings in the National Company Law Tribunal to liquidate Bhushan Power & Steel.
The National Company Law Tribunal had started insolvency proceedings against Bhushan Power on a petition by Punjab National Bank in 2017. In 2019, it approved the resolution plan submitted by JSW Steel for the company. On May 2, the Supreme Court had set aside JSW Steel's resolution plan for Bhushan Power on a petition by operational creditor Kalyani Transco. Ruling JSW Steel's resolution plan illegal and saying it should not have been accepted by the committee of creditors of the debt-ridden company, the top court had directed the liquidation of Bhushan Power.
The committee of creditors had failed to exercise its commercial wisdom by approving the resolution plan of JSW Steel, which was in contravention of the mandatory provisions of the 2016 code, the top court had said. The committee of creditors had also failed to protect the interest of creditors by taking contradictory stands before the court and accepting the payment from JSW Steel without any measure and supporting the latter to implement its motivated plan against the interest of creditors, the apex court had said.
On May 23, JSW Steel had moved the Supreme Court to stay proceedings to liquidate Bhushan Power & Steel till the former company exhausts all its legal remedies. JSW Steel had said that the liquidation of Bhushan Power would be "fatal" to it and other stakeholders, including lenders and workers.
On Monday, shares of Punjab National Bank closed 0.2% higher at INR 106.79 on the National Stock Exchange, while those of JSW Steel closed 1.7% higher at INR 1,003.80. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
