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Informist, Monday, Jul. 21, 2025

 

--Promoters of Bhushan Power move SC to seek appointment of administrator 

--Bhushan Power promoters to SC: Appoint administrator till review plea order 

--Bhushan Power lenders seek listing of review pleas in IBC case 

--CONTEXT: SC ordered liquidation of Bhushan Power and Steel 

--CONTEXT: JSW Steel, Bhushan Power lenders filed review plea in SC 

--SC: Will constitute bench soon for review pleas in Bhushan Power IBC case 

--SC: Will list Bhushan Power promoters plea, JSW Steel, lenders review plea 

 

NEW DELHI – The Supreme Court on Monday said it will soon constitute a bench to hear review pleas filed by JSW Steel Ltd. and lenders of Bhushan Power and Steel Ltd. against the apex court's May 2 verdict to order liquidation of the latter. 

 

Advocate for original promoters of Bhushan Power, Vikas Singh, said the top court had on May 26 directed status quo on the liquidation proceedings against Bhushan Power till all the concerned parties had filed their review pleas in the case. Since the review pleas were now filed, Singh sought appointment of an administrator till these review pleas were decided. The bench led by Chief Justice of India B.R. Gavai said the court will list the plea of the original promoter and review pleas by JSW Steel and Bhushan Power lenders after the constitution of the bench.

 

In its review petition JSW Steel had sought an open court hearing in the Supreme Court against the verdict that had set aside the company's resolution plan for debt-ridden Bhushan Power and Steel Ltd. In addition, JSW Steel sought the top court to stay its order that had directed liquidation of Bhushan Power.

 

JSW Steel argued that its INR-193.50-billion resolution plan was implemented in 2021 to the benefit of all stakeholders and that the liquidation of Bhushan Power will have adverse ramifications on the debt-ridden company that was operating as a viable and a going concern since its acquisition. 

 

It has transformed Bhushan Power's financial health and now its operational capacity has almost doubled, sales have increased by almost three times from INR 87.01 billion in 2016-17 (Apr-Mar) to INR 259.73 billion in FY25 and exports have resumed with an annual average of INR 29.76 billion in the last four years, said JSW Steel. In addition, Bhushan Power has contributed INR 169.00 billion in taxes to the exchequer and a capital investment of INR 57.88 billion has been made by the petitioner in the debt-ridden company since 2021, said JSW Steel.

 

In its order dated May 2, the Supreme Court had ruled that the resolution plan for Bhushan Power and Steel was illegal and should not have been accepted by the committee of creditors. The court directed liquidation of the company in its order. The lenders of Bhushan Power, including Punjab National Bank and State Bank of India, had in June also filed a review petition in the case.

 

At 1133 IST, shares of JSW Steel were down 0.7% at INR 1,027.50 on the National Stock Exchange. The shares of Punjab National Bank were down 0.6% at INR 112.66 and those of State Bank of India were down 0.2% at INR 821.75.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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