Bhushan Power and Steel Liquidation: Supreme Court to hear JSW Steel's plea today

JSW Steel posted a net profit of Rs 1,503 crore, up 16 percent YoY, for Q4.

The Supreme Court is set to hear JSW Steel’s plea on the liquidation of Bhushan Power and Steel today, a Mint report says. As per the report, the metal major is seeking a stay on BPSL liquidation. Previously, on May 2, the SC had rejected the Rs 19,300 crore resolution plan. The plea names Sanjay Singhal, the former promoter of Bhushan Power and Steel. It was Singhal’s petition that led to the Supreme Court’s May 2 ruling.

The matter will be heard by a bench comprising Justices Satish Chandra Sharma and BV Nagarathna. Justice Nagarathna replaces Justice Bela M. Trivedi, who was part of the original bench with Justice Sharma and has since retired.

JSW Steel has reportedly requested the court to postpone the liquidation process by 60 days. In addition, the company has sent demand notices to banks, asking for refunds of the payments made under the resolution plan that has now been nullified. Ahead of the hearing, JSW Steel's Jayant Acharya said that "we have implemented resolution plan in full compliance with law." He also said that "we believe JSW Steel has strong grounds for availing all legal remedies with respect to BPSL."
Meanwhile, the National Company Law Tribunal (NCLT) is scheduled to hear a separate plea on Monday filed by Sanjay Singhal. In his petition, Singhal has called for the immediate implementation of the Supreme Court’s liquidation order, arguing that prompt action is necessary to protect Bhushan Power and Steel’s assets and to avoid any risk of misuse or diversion.

Last week, management of JSW Steel had told investors that it retains control over BPSL and production and deliveries continue from the BPSL facility even after the top court's ruling. The management noted its continued control over BPSL, in response to investors' questions on whether the Union government's Enforcement Directorate (ED) may seek to attach part of BPSL's assets as part of its anti-money laundering investigations into its erstwhile promoters. Industry observers have noted that the ED may be able to re-attach around Rs 4,000 crore of BPSL's assets, after the Supreme Court order noted deviations in the resolution plan, such as delays in payments to creditors.