In a significant interim relief to JSW Steel, the Supreme Court on Monday ordered status quo on the liquidation proceedings of Bhushan Power and Steel Limited (BPSL) pending before the National Company Law Tribunal (NCLT).
A Bench comprising Justices B.V. Nagarathna and Satish Chandra Sharma observed that any further steps toward liquidation at this stage may prejudice the review petition that JSW Steel proposes to file.
“Without expressing any opinion at this stage, we are of the view that it would be in the interest of justice if status quo is maintained on the proceedings pending in NCLT,” the Bench stated in its order.
The development comes weeks after the apex court, on May 2, set aside the resolution plan submitted by JSW Steel for the takeover of BPSL. The Court had then held that the plan violated the provisions of the Insolvency and Bankruptcy Code (IBC), rendering the acquisition process illegal.
The Supreme Court’s latest order effectively puts a temporary pause on the liquidation process, offering JSW Steel a window to pursue its legal remedies.
The matter is expected to have wide ramifications for resolution applicants and creditors involved in other insolvency proceedings, particularly those where judicial intervention has altered or reversed the resolution outcomes.
The case will now proceed based on the outcome of the proposed review petition.
