SC junks JSW's Resolution Plan for Bhushan Steel

 

Resolution Professional utterly failed to discharge his statutory duties contemplated under the IBC and CIRP regulations during the course of entire CIR proceedings, says Justice Trivedi T he Supreme Court, in a judgment, on Friday rejected the Resolution Plan submitted by JSW Steel for Bhushan Power and Steel Ltd. (BPSL The National Company Law Appellate Tribunal had previously approved the Resolution Plan "The judgment passed by the NCLAT in allowing the company appeal of JSW and issuing the direc tions without any authori ty of law and without juris diction is perverse, coram non judice and liable to be set aside," a Bench headed by Justice Bela M. Trivedi said. The court found the Resolution Plan in "fla "What we have learned was that having everything Strong rebuke: The CoC had failed to protect the interest of the creditors by taking contradictory stands, the SC said. grant violation and contra vention of the law. "The Resolution Professional had utterly failed to discharge his statutory du ties contemplated under the Insolvency and Bank ruptcy Code (IBC) and the Corporate Insolvency Re solution Process (CIRP) Regulations during the course of entire CIR pro ceedings of the corporate debtor, BPSL," the Su preme Court concluded. The court faulted the Committee of Creditors (CoC) for accepting the Re solution Plan. The court further directed the Na tional Company Law Trt bunal to initiate liquidation proceedings against BPSL "The CoC had failed to exercise its commercial wisdom while approving the Resolution Plan of the JSW, which was in absolute contravention of the man datory provisions of IBC and CIRP Regulations. The COC also had failed to pro tect the interest of the creditors by taking con tradictory stands before this court, and accepting the payments from JSW without any demurrer, and supporting JSW to imple ment its ill-motivated plan against the interest of the creditors," Justice Trivedi held. A spokesperson for JSW Steel said the compa ny would decide its future course of action after re viewing the judgment with their legal advisors.