Supreme Court Halts Bhushan Power's Liquidation Amidst Legal Tussle

The Supreme Court on Monday intervened to halt ongoing liquidation proceedings against Bhushan Steel and Power Ltd (BPSL) to ensure justice is served while a review petition is pending. This decision was taken by a bench comprising Justices B V Nagarathna and Satish Chandra Sharma, underlining the judiciary's cautious approach to high-stakes corporate insolvency cases.

The bench expressed concerns that liquidation might prejudge the review petition to be filed by JSW Steel Limited, which had earlier submitted a resolution plan for BPSL. The Supreme Court had overturned this plan on May 2, citing it as illegal and in breach of the Insolvency and Bankruptcy Code (IBC).

By maintaining the status quo on the National Company Law Tribunal's proceedings, the Court aims to ensure that due process is followed in resolving the intricate legal matters surrounding the insolvency proceedings of one of India's large industrial players.

(With inputs from agencies.)