Bhushan Power & Steel Liquidation: Supreme Court Ruling
Why in the news
The Supreme Court voided JSW Steel’s 2021 plan for BPSL and ordered liquidation.
Key facts
- The RP did not file Form H, did not verify JSW’s Section 29A eligibility, and did not disclose a JSW joint venture with an entity linked to BPSL’s former promoters.
- The CoC and NCLT were misled; the Court called the omissions “not procedural but material”.
- Section 25 IBC requires RP due diligence; Section 29A bars ineligible applicants.
- In 2023, IBBI referred the RP’s conduct (insurance costs, graphite imports from China) for scrutiny.
Significance
- More accountability for resolution professionals.
- Higher due diligence and transparency.
- IBBI gets stronger disciplinary reach.
Exam angle
- Sections: 25 (RP duties), 29A (eligibility).
- Insolvency admitted: 2017.