BSPL liquidation: Supreme Court Order Current Situation Pending JSW Review Petition
The Supreme Court ordered the status of liquidation procedures against Bhushan Steel and Power Ltd (BSPL) on Monday. The Supreme Court is hearing a petition filed by BSPL’s parent JSW Steel, which calls for liquidation proceedings to the companies it acquires in 2021 through bankruptcy lawsuits. Justice BV Nagarathna and Satish Chandra Sharma directed the same thing to allow JSW Steel to file a petition for review of the Supreme Court’s May 2 judgment.
The development comes after the Supreme Court’s ruling on May 2, that BSPL canceled JSW Steel’s resolution plan, worth Rs 193 billion. JSW Steel asked the court to postpone the liquidation process for two months, believing that the liquidation process against BSPL would be “fatal” and would affect lenders and workers.
Monday’s ruling provided some relief for JSW Steel to submit a review petition against the May 2 verdict.
The Supreme Court directed NCLT to consider the matter until it ruled the review request.
JSW Steel will now have to submit a petition for review on the matter within the prescribed time.
Bhushan Steel and Power Ltd is one of the first major offenders identified by the Reserve Bank of India under the Bankruptcy and Bankruptcy Act (IBC) laws in 2017.
JSW Steel shares after favorable Supreme Court rule for private sector steel manufacturers
Shortly after the news, JSW Steel stocks underwent a dramatic intraday recovery.
The stock is traded in BSE and NSE with the symbol JSWSTEEL – in early Monday trading, the price of BSE was as high as Rs 27.4, or 2.7%, at Rs 1,035.9, respectively.
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