BSPL Liquidation: Supreme Court orders status quo pending JSW review petition

The Supreme Court on Monday ordered status quo on the liquidation proceedings against Bhushan Steel and Power Ltd (BSPL). The top court was hearing a petition filed by BSPL parent JSW Steel, which sought a stay on the liquidation proceedings against the company it acquired in 2021 through insolvency proceedings. Justices BV Nagarathna and Satish Chandra Sharma directed the same in order to allow JSW Steel to file a review petition against the Supreme Court's May 2 judgment.

The development follows the top court's May 2 verdict that quashed JSW Steel's resolution plan worth Rs 19,300 crore for BSPL. JSW Steel had requested the court to postpone the liquidation proceedings by two months, arguing that initiating liquidation proceedings against BSPL would be “fatal” and would affect lenders as well as workers.

Monday's ruling provided some relief to JSW Steel, allowing it to file a review petition against its May 2 verdict. 

The Supreme Court directed the NCLT to consider the matter pending until it rules on the review plea. 

JSW Steel will now have to file a review petition in the matter within the stipulated time.

Bhushan Steel and Power Ltd was among the first major defaulters that the RBI identified in 2017 for resolution under the Insolvency and Bankruptcy Code (IBC) law. 

JSW Steel shares jump after top court rules in private sector steelmaker's favour

JSW Steel shares made a dramatic intraday recovery shortly after the news. 

The stock—traded on exchanges BSE and NSE with the symbol JSWSTEEL—rose by Rs 23.3, or 2.3 per cent, to settle at Rs 1,031.8 apiece on BSE, having declined to as low as Rs 979.8 apiece earlier during Monday's trade. 

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