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Photo: Mint
Photo: Mint

SC to hold final hearing in BPSL insolvency case on 8 September

  • Bhushan Power was part of the original dirty dozen cases identified by the Reserve Bank of India to be referred to bankruptcy courts
  • JSW Steel, with an offer of 19,700 crore for the bankrupt steel mill, was the highest bidder for the asset

The Supreme Court on Wednesday said that will hold the final hearing in the Bhushan power and steel Ltd (BPSL) insolvency case on 8 September. The top court has directed all the parties to file their affidavits, replies and rejoinders within four weeks.

The matter was listed before the apex court bench headed by Chief Justice S.A. Bobde.

The current appeal has been filed by the Enforcement Directorate (ED) challenging the sale of the bankrupt BPSL to JSW Steel. ED has filed a complaint stating that the cases against the BPSL should continue and argued that NCLAT (National Company Law Appellate Tribunal) has no jurisdiction to unfreeze assets attached under PMLA and allow sale of those assets.

Senior advocate Abishek Manu Shinghvi, who appeared for Committee of Creditors (CoC), submitted that the as per the provisions of the new law, it is the new management which is held liable and accountable for the cases pending on the old company.

Bhushan Power was part of the original dirty dozen cases identified by the Reserve Bank of India to be referred to bankruptcy courts. JSW Steel, with an offer of 19,700 crore for the bankrupt steel mill, was the highest bidder for the asset. However, the Enforcement Directorate, which is pursuing an investigation into alleged money laundering by the company under its previous management, attached the assets of the steel mill, stalling its sale.

The Supreme Court on 6 March had accepted the declaration of creditors of BPSL that in case the apex court rules in favour of the former promoter against the steel mill's sale, the lenders will return the resolution proceeds within two months. The CoC urged the court that a further delay in the resolution process significantly adds to its outstanding non-performing assets.

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