Supreme Court’s Judgment in Bhushan Power and Steel Ltd.: a wake up call for the Resolution Professionals and Committee of Creditors
Team Resolution | resolution@vinodkothari.com
The Supreme Court judgement in the matter of Kalyani Transco v. Bhushan Power and Steel Ltd., set aside the resolution plan for Bhushan Power and Steel Ltd., and directed liquidation, after almost 6 years the resolution plan was approved by National Company Law Tribunal, citing significant gaps in the conduct of corporate insolvency resolution processes – for instance, lapses in meeting statutory timelines, deficiencies in eligibility verification under section 29A, irregularities in plan implementation, judicial overreach by National Company Law Appellate Tribunal, among others.
In this write up, we have made an attempt to discuss significant points of law as discussed by SC in this ruling and also provide our humble comments on the same. Needless to say, many of the concerns highlighted by the SC in this judgment would act as a binding code of conduct for all resolution professionals, CoCs, and even judicial institutions.
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