Supreme Court Slams BPSL Promoters for Stalling Insolvency
The Supreme Court criticized former promoters of Bhushan Power and Steel Limited for delaying the corporate insolvency resolution process. The judgment supported JSW Steel's acquisition plan, noting the promoters' lack of constructive participation. The bench highlighted their procedural delays and imposed penalties to emphasize their obstructionist tactics.
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- India
The Supreme Court has delivered a strong rebuke to the former promoters of Bhushan Power and Steel Limited, accusing them of deliberately hindering the corporate insolvency resolution process (CIRP). This judgment represents a strong stance by the judiciary on ensuring timely resolution of insolvency proceedings.
A bench led by Chief Justice of India B R Gavai, along with Justices Satish Chandra Sharma and K Vinod Chandran, upheld the National Company Law Appellate Tribunal's 2020 decision to allow JSW Steel to acquire BPSL, providing it immunity from prosecution by the Enforcement Directorate.
The decision highlighted the court's focus on efficiency and fairness, criticizing the promoters, led by Sanjay Singal, for attending only a fraction of the Committee of Creditors meetings. The court noted the promoters' strategy of filing numerous applications across various legal forums to delay proceedings, resulting in penalties for their obstructive actions.
(With inputs from agencies.)
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