<p>New Delhi: In a major judgment, the Supreme Court on Friday set aside JSW Steel Ltd's Rs 19,700-crore resolution plan for Bhushan Power & Steel by calling it illegal.</p><p>The apex court directed liquidation of the bankrupt firm.</p><p>A bench headed by Justice Bela M Trivedi declared that JSW Steel's resolution plan was illegal and should not have been accepted by the committee of creditors of the debt-ridden company.</p><p>The judgment comes as a big setback for JSW Steel.</p><p>In its decision, the court found JSW Steel, committee of creditors and the resolution professional sought to sweep many seminal issues under the carpet to cover up gross violations of the provisions of Insolvency and Bankruptcy Code, 2016. </p>.Supreme Court refuses to entertain fresh plea challenging Waqf (Amendment) Act.<p>The bench said, it noted non-compliance and violations of mandatory provisions of the 2016 Code at the instance of JSW Steel, committee of creditors and resolution professionals at pre-approval and post-approval stages of resolution.</p><p>"Nobody should be permitted to misuse the process of law or should be permitted to take undue advantage of the pendency of any proceedings in the court or tribunal," the bench said. </p><p>In strong observations, the bench found malafide and dishonest intention on the part of JSW Steel in securing the highest score for its plan, making misrepresentation before court and then not implementing the same under the garb of the Enforcement Directorate proceedings against Bhushan Steel. </p><p>The court also noted the resolution professional had utterly failed to discharge his statutory duties contemplated in the 2016 Code.</p><p>The bench further said that the committee of creditors had failed to exercise its commercial wisdom by approving the resolution plan of JSW Steel, which was in contravention of the mandatory provisions of the 2016 Code. </p><p>The committee of creditors had also failed to protect the interest of the creditors by taking contradictory stands before this court and accepting the payment from JSW Steel without any measure and supporting the latter to implement its motivated plan against the interest of creditors, the bench said.</p><p>JSW Steel had secured the highest score, but even after the approval of its plan, it willfully contravened and did not comply with the terms of the said resolution plan for a period of over two years, defeating the very object and purpose of the IBC, the bench said.</p><p>In 2017, the National Company Law Tribunal began insolvency proceedings against Bhushan Power & Steel on a petition by Punjab National Bank in 2017. </p><p>In 2019, it approved the resolution plan submitted by JSW Steel for the debt-ridden company. </p><p>The Enforcement Directorate also registered a case against Bhushan Power and its officers for money-laundering offences on charges of defrauding banks to the tune of Rs 47,204 crore, which was subsequently set aside by the Delhi High Court.</p>
<p>New Delhi: In a major judgment, the Supreme Court on Friday set aside JSW Steel Ltd's Rs 19,700-crore resolution plan for Bhushan Power & Steel by calling it illegal.</p><p>The apex court directed liquidation of the bankrupt firm.</p><p>A bench headed by Justice Bela M Trivedi declared that JSW Steel's resolution plan was illegal and should not have been accepted by the committee of creditors of the debt-ridden company.</p><p>The judgment comes as a big setback for JSW Steel.</p><p>In its decision, the court found JSW Steel, committee of creditors and the resolution professional sought to sweep many seminal issues under the carpet to cover up gross violations of the provisions of Insolvency and Bankruptcy Code, 2016. </p>.Supreme Court refuses to entertain fresh plea challenging Waqf (Amendment) Act.<p>The bench said, it noted non-compliance and violations of mandatory provisions of the 2016 Code at the instance of JSW Steel, committee of creditors and resolution professionals at pre-approval and post-approval stages of resolution.</p><p>"Nobody should be permitted to misuse the process of law or should be permitted to take undue advantage of the pendency of any proceedings in the court or tribunal," the bench said. </p><p>In strong observations, the bench found malafide and dishonest intention on the part of JSW Steel in securing the highest score for its plan, making misrepresentation before court and then not implementing the same under the garb of the Enforcement Directorate proceedings against Bhushan Steel. </p><p>The court also noted the resolution professional had utterly failed to discharge his statutory duties contemplated in the 2016 Code.</p><p>The bench further said that the committee of creditors had failed to exercise its commercial wisdom by approving the resolution plan of JSW Steel, which was in contravention of the mandatory provisions of the 2016 Code. </p><p>The committee of creditors had also failed to protect the interest of the creditors by taking contradictory stands before this court and accepting the payment from JSW Steel without any measure and supporting the latter to implement its motivated plan against the interest of creditors, the bench said.</p><p>JSW Steel had secured the highest score, but even after the approval of its plan, it willfully contravened and did not comply with the terms of the said resolution plan for a period of over two years, defeating the very object and purpose of the IBC, the bench said.</p><p>In 2017, the National Company Law Tribunal began insolvency proceedings against Bhushan Power & Steel on a petition by Punjab National Bank in 2017. </p><p>In 2019, it approved the resolution plan submitted by JSW Steel for the debt-ridden company. </p><p>The Enforcement Directorate also registered a case against Bhushan Power and its officers for money-laundering offences on charges of defrauding banks to the tune of Rs 47,204 crore, which was subsequently set aside by the Delhi High Court.</p>
