JSW Steel , in its review petition to the Supreme Court, is expected to highlight its financial losses that were borne out of the invalidation of its ₹19,350 crore insolvency resolution plan for Bhushan Power and Steel Ltd (BPSL), besides detailing its arguments on the legality of the takeover process, said legal experts.
The largest steelmaker in India, with a capacity of 34.2 million tonnes (MT), has implemented a comprehensive revamp of the bankrupt firm’s steel mill post its takeover in March 2021, and increased the steelmaking capacity to 4.5 MT from 2.75 MT in two phases. In addition, JSW Steel has debts of BPSL on its consolidated balance sheet.
JSW Steel will be filing the review petition within the Supreme Court’s allowed timeframe—by Monday—against the liquidation order, said people familiar with the matter. Should the review petition fail, the Committee of Creditors (CoC) will have to appoint a liquidator and execute liquidation under the supervision of the National Company Law Tribunal (NCLT).
On May 2, the Supreme Court cancelled JSW Steel’s resolution plan for BPSL because it failed to meet the legal standards set by the Insolvency and Bankruptcy Code (IBC), and the authorities that approved it acted beyond their lawful scope. A bench of Justice Bela Trivedi and Justice Satish Chandra Sharma said JSW Steel delayed in implementing the resolution plan, and the CoC failed to exercise its commercial wisdom while approving it.
