JSW Steel: BPSL Resolution Plan Implementation in Compliance with Law

JSW Steel has stated that its implementation of the resolution plan for Bhushan Power & Steel (BPSL) was in compliance with the law, despite the Supreme Court's order to liquidate the company and refund funds. The company's consolidated accounts do not include provisions for BPSL's net assets, which are valued at ₹14,091 crore. JSW Steel believes it has strong grounds for appealing the Supreme Court's decision.

JSW Steel has taken legal action following the Supreme Court's decision to liquidate Bhushan Power & Steel (BPSL) and refund funds paid as part of the resolution plan. The company has issued demand notices to banks, seeking a refund of ₹19,300 crore and a 60-day delay in the liquidation process [1][2].

The Supreme Court's ruling, issued earlier this month, struck down JSW Steel's 2019 acquisition of BPSL due to non-compliance with legal directives. The court ordered BPSL's liquidation and directed that the funds paid by JSW Steel be refunded within a specified timeframe [1][2].

JSW Steel maintains that its implementation of the resolution plan was in compliance with the law. The company's consolidated accounts do not include provisions for BPSL's net assets, valued at ₹14,091 crore. JSW Steel believes it has strong grounds for appealing the Supreme Court's decision [1][2].

The National Company Law Tribunal (NCLT) will oversee the liquidation process, with the committee of creditors (CoC) having the power to appoint the liquidator and monitor the proceedings. The court has cited precedents on steps to be taken if a resolution plan is rejected, including the refund of upfront payments [1][2].

The liquidation process will be conducted under the guidance of the NCLT, with the CoC overseeing the refund of funds to JSW Steel within the specified timeframe. The court's ruling has set a precedent for future resolution plans, emphasizing the importance of compliance and the consequences of non-compliance [1][2].

References:
[1] https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/jsw-steel-seeks-refund-of-bhushan-power-and-steel-linked-payments/articleshow/121347376.cms
[2] https://www.business-standard.com/industry/news/jsw-steel-seeks-refund-after-sc-cancels-bpsl-acquisition-125052300625_1.html