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Supreme Court to Hold Final Hearing in BPSL Case on 8 September

Steel News - Published on Thu, 06 Aug 2020

Image Source: JSW Steel BPSL
The Supreme Court said that will hold the final hearing in the Bhushan power and steel Ltd insolvency case on 8 September and has directed all the parties to file their affidavits, replies and rejoinders within four weeks.

The current appeal has been filed by the Enforcement Directorate 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 National Company Law Appellate Tribunal has no jurisdiction to unfreeze assets attached under PMLA and allow sale of those assets.

JSW Steel, whose resolution plan has been approved by the National Company Law Tribunal and the appellate tribunal to take over the bankrupt Bhushan Power and Steel, told the Supreme Court that it iss not possible for it to pay the lenders and then wait for the outcome of the Enforcement Directorate’s proceedings against the old management in an alleged money laundering case. JSW Steel had offered to pay INR 19,350 crore to the financial creditors as part of its resolution plan, which was a near 60% haircut for the lenders and had earlier missed the deadline of March 17 to make the payment as per approval from National Company Law Appellate Tribunal.

On the other senior advocate Abishek Manu Shinghvi, who appeared for Committee of Creditors, 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.

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Posted By : Yogender Pancholi on Thu, 06 Aug 2020
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