The Supreme Court on Thursday recalled its May 2 judgment that had ordered the liquidation of Bhushan Steel and Power Limited (BSPL), stating that the earlier decision did not correctly consider the applicable legal position under the Insolvency and Bankruptcy Code (IBC).
A bench comprising Chief Justice B. R. Gavai and Justice Satish Chandra Sharma was hearing a batch of review petitions challenging the May 2 verdict. The Court noted that certain legal principles laid down in earlier judgments had not been properly considered and that the matter deserved fresh adjudication.
“We are of the view that the impugned judgment does not correctly consider the legal position as has been laid down in the catena of judgments,” the bench observed in its order.
The Court also pointed out that there were disputes regarding the factual basis of the earlier ruling.
“It is submitted that various factual aspects have been taken into consideration, arguments which were not advanced were also considered, though this position is disputed,” the bench noted.
Calling it a fit case for reconsideration, the Court recalled the previous judgment and directed that the matter be heard afresh. The review petitions have now been listed for a fresh hearing next Thursday.
The May 2 ruling, delivered by a bench led by then Justice Bela M. Trivedi (since retired), had set aside the resolution plan submitted by JSW Steel Limited for acquiring BSPL. The Court had directed liquidation proceedings to commence, sharply criticising the conduct of the Resolution Professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT) for allowing what it described as a “flagrant violation” of the IBC process.
With the latest order, the legal fate of BSPL and the JSW Steel resolution plan is once again open to judicial scrutiny.
