Bhushan Power Lenders Fille Review Plea After SC Scraps JSW Resolution Plan

Lenders of Bhushan Power & Steel Ltd., led by Punjab National Bank, have filed a review petition against the Supreme Court’s verdict that scrapped JSW Steel Ltd.’s resolution plan for the debt-laden company.

The petition follows the top court’s May order that set aside JSW Steel’s plan and directed the liquidation of Bhushan Power. The court had also put a status quo on ongoing proceedings before the National Company Law Tribunal.

Bhushan Power was admitted to insolvency in 2017 on a petition by Punjab National Bank. Two years later, the tribunal approved JSW Steel’s ₹197 billion resolution plan. However, the Supreme Court, acting on a plea by operational creditor Kalyani Transco, held on May 2 that the plan was illegal and shouldn’t have been accepted by the committee of creditors.

The bench had criticised the committee for failing to exercise commercial judgement and for backing a resolution that violated provisions of the Insolvency and Bankruptcy Code, 2016. It also noted that the committee took contradictory stands in court and accepted payments from JSW Steel without safeguards.

On May 23, JSW Steel urged the apex court to stay liquidation proceedings until it exhausts all legal options, calling liquidation “fatal” for all stakeholders, including workers and lenders.