The center closely examines the recent verdict of the Supreme Court which canceled the 19,700 JSW Steel resolution plan for Bhushan Power and Steel Ltd (BPSL), and will soon finalize its official position, the report of the Ministry of Financial (DFS) said on Monday.
The secretary of the DFS, Mr. Nagaraju, would have declared that the government had already discussed the verdict with all the lenders involved and sought of legal opinions. “We have taken a stand, we studied judgment, we have the point of view of our defenders on judgment,” said Nagaraju. “Now we admire the government on how we approach judgment. We will end soon. “
The Supreme Court, in a verdict rendered on April 2, canceled the resolution plan which had previously been approved by the Creditors Committee (COC), the National Court of Companies ‘Law (NCLT) and the Court of Appeal of the National Companies’ Law (NCLAT). The Superior Court judged that the resolution plan had not respected articles 30 (2) and 31 (2) of the code of insolvency and bankruptcy (IBC), and ordered the liquidation of the BPSL by virtue of article 142 of the Constitution, invoking the extraordinary powers of the Court.
The decision marks a spectacular reversal for JSW Steel, who had acquired BPSL in March 2021 as part of the IBC. The acquisition was an important step for JSW, granting it a significant manufacturing capacity to Odisha and expanding its imprint in eastern India. With the last intervention of the Supreme Court, the future of BPSL and the complaints of its creditors were disarled.
JSW Steel, for his part, said he was currently examining the ordinance of the Supreme Court before deciding on his next steps.
