NCLT Defers Hearing on Bhushan Power & Steel Promoter’s Plea to 26 June

The legal tussle over debt-ridden Bhushan Power & Steel Ltd (BPSL) took a significant turn as the National Company Law Tribunal (NCLT) on Tuesday deferred a crucial hearing to 26 June. The matter relates to a petition filed by Sanjay Singhal, former promoter of BPSL, seeking the enforcement of a Supreme Court judgment that nullified JSW Steel’s ₹19,700 crore resolution plan and ordered the company's liquidation under the Insolvency and Bankruptcy Code (IBC).

NCLT Acknowledges Supreme Court Order and Defers Action

Appearing before the Delhi-based Principal Bench of the NCLT, Sanjay Singhal requested that the tribunal officially place the Supreme Court’s judgment on record and ensure its execution. The tribunal, comprising its president and another member, acknowledged the apex court’s order and admitted it into the proceedings.

Solicitor General Tushar Mehta, representing the government, highlighted that multiple stakeholders were involved in the matter. He stated, “All parties are required to be heard in this matter by the insolvency tribunal,” and sought time to identify and implead them. The NCLT agreed with this request and adjourned the hearing.

Timeline of Events and Legal Implications

The CIRP for BPSL began in July 2017 after a plea by Punjab National Bank, with the firm being part of the RBI’s first list of 12 large NPAs. In February 2020, the National Company Law Appellate Tribunal (NCLAT) approved JSW Steel’s resolution plan, granting it immunity from prosecution by the Enforcement Directorate (ED), which had attached assets worth over ₹4,025 crore related to alleged fraud by the former promoters.

However, the Supreme Court on 2 May overruled the NCLT and NCLAT orders, calling them “perverse” and lacking jurisdiction. It directed the return of money received by financial and operational creditors and criticised JSW Steel and other stakeholders for procedural lapses. The court invoked its powers under Article 142 to direct liquidation of BPSL under section 33(1) of the IBC.

Read More: Supreme Court Order Could Send Bhushan Power & Steel Back on the Auction Block

Conclusion

The BPSL case underscores the importance of adhering strictly to the legal and procedural norms of the IBC framework. With the Supreme Court setting aside earlier approvals and ordering liquidation, the role of insolvency tribunals and stakeholders now comes under renewed scrutiny. The matter will next be taken up by the NCLT on 26 June.

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