AI Overview...
Summary of Bhushan Power and Steel Case (Supreme Court Civil Appeal No. 1808 of 2020, Decided 02.05.2025)
Main Points and Insights
-
Invalidity of Resolution Plan
The Supreme Court invalidated the resolution plan approved for Bhushan Power and Steel Limited, primarily due to non-compliance with statutory requirements under the Insolvency and Bankruptcy Code (IBC), leading to its liquidation. The Court emphasized that resolution plans must strictly adhere to procedural and substantive legal standards (Kalyani Transco VS Bhushan Power And Steel Ltd. - Supreme Court, Paras 24, 26, 33). -
Overturning of NCLT Orders
The Court overturned the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) decisions that had approved the resolution plan, asserting that the approval was flawed and did not conform to the legal framework, thus invalidating the resolution process (Kalyani Transco VS Bhushan Power And Steel Limited - Supreme Court, Paras 84, 85, 191). -
Legal Authority and Precedents
The judgment references the authority of the Supreme Court in previous rulings, notably the Kalyani Transco vs. Bhushan Power and Steel Ltd. case, which underscores the importance of procedural correctness and the finality of liquidation decisions (ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED vs CORPORATE POWER LIMITED - National Company Law Tribunal, Paras 25-27; Gaurav Katiyar vs Nisus Finance And Investment Managers LLP - National Company Law Appellate Tribunal, Paras 15, 48). -
Impact of the Kalyani Transco Judgment
The Court relied heavily on the Kalyani Transco case to reinforce that resolution processes failing statutory compliance cannot be upheld, and that the Court’s role is to ensure the integrity of the insolvency process. The judgment also stresses that extensions or procedural relaxations must align with IBC objectives of timely resolution (JSW STEEL LIMITED vs SANJAY SINGHAL & ORS. - Supreme Court, CMA Vijender Sharma for VRSA Insolvency Professionals LLP VS - National Company Law Tribunal). -
Liquidation as the Final Outcome
Due to the invalid resolution plan, the Court ordered the initiation of liquidation proceedings under Section 33 of the IBC, marking a departure from the resolution process due to procedural lapses and non-conformance with statutory norms (Kalyani Transco VS Bhushan Power And Steel Ltd. - Supreme Court, Paras 24, 26). -
Finality and Principle of Finality
The judgment underscores the principle of finality in insolvency proceedings, asserting that challenges at this late stage would undermine the legal framework and the finality of the liquidation process, as established in prior Supreme Court rulings (Employees Provident Fund Organisation VS Shri Kanekal Chandrasekhar Liquidator Southern Batteries Pvt Ltd - National Company Law Tribunal).
Analysis and Conclusion
The Supreme Court’s decision in this case reaffirms the strict adherence to procedural and statutory compliance in insolvency proceedings. It highlights that resolution plans must conform to the law; otherwise, they are liable to be invalidated, leading to liquidation. The case underscores the Court’s commitment to uphold the integrity of the insolvency process, emphasizing that procedural lapses cannot be overlooked, and finality in resolution and liquidation is paramount. The judgment also consolidates the legal position established in the Kalyani Transco case regarding the authority of courts and tribunals in insolvency matters.
References: - Kalyani Transco VS Bhushan Power And Steel Ltd. - Supreme Court, Paras 24, 26, 33 - Kalyani Transco VS Bhushan Power And Steel Limited - Supreme Court, Paras 84, 85, 191 - CMA Vijender Sharma vs Power Finance Corporation - National Company Law Tribunal, Paras 34 - Sunil Kumar Sharma vs Mr. Bhuvan Madan - National Company Law Tribunal, citing Kalyani Transco case - Gaurav Katiyar vs Nisus Finance And Investment Managers LLP - National Company Law Appellate Tribunal, Paras 15, 48 - JSW STEEL LIMITED vs SANJAY SINGHAL & ORS. - Supreme Court, legal principles from Kalyani Transco case - Employees Provident Fund Organisation VS Shri Kanekal Chandrasekhar Liquidator Southern Batteries Pvt Ltd - National Company Law Tribunal, principles of finality in insolvency
Search Results for "Bhushan Power and Steel Case Supreme Court Civil Appeal no 1808 2020 2 May 2025"
2025 Supreme(Online)(SC) 4923 • India - Supreme Court of India
B. V. NAGARATHNA, SATISH CHANDRA SHARMA, JJ
in the case of Kalyani Transco vs. ... ITEM NO.40 COURT NO.5 SECTION XVII S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS SPECIAL LEAVE PETITION (CIVIL) DIARY NO(S). 29406/2025 [ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 13-05-2025 IN IA NO. 2160/2025 21 ... Neeraj Kishan Kaul that the Review Petition(s) would be filed before this Court prior to the expiry of the limitation period and in accordance with law. This appeal is d....
2025 0 Supreme(SC) 767 • India - Supreme Court
BELA M. TRIVEDI, SATISH CHANDRA SHARMA
... ... Result: The appeal is allowed, overturning previous orders and initiating liquidation of Bhushan Power and Steel Limited. ... (Paras 24, 26, 33) ... ... Facts of the case: ... The resolution plan for Bhushan ... Power and Steel Limited, proposed by JSW Steel, was improperly approved without adherence to statutory requirements, raising substantial ... 2. These Civil Appeals#HL....
2025 0 Supreme(SC) 1745 • India - Supreme Court
B. R. GAVAI, SATISH CHANDRA SHARMA, K. VINOD CHANDRAN
(Paras 164, 169) ... ... Facts of the case: ... The appeal arose after NCLT approved a resolution ... The Supreme Court concluded the resolution plan was invalid, leading to liquidation under section 33 due to its non-conformance with ... (Paras 84, 85, 191) ... ... (B) Resolution Plan Approval - The Supreme Court ... The Civil Appeal No. 1808 of 2020 (Kalyani Transco vs. M/s. Bhushan #HL_STA....
2025 Supreme(Online)(NCLT) 2937 • India - National Company Law Tribunal
Shammi Khan, Sanjeev Kumar Sharma, JJ
(A) Insolvency and Bankruptcy Code, 2016 - Sections 12(2), 60(5)(c), 33(1)(a) - Extension of Corporate Insolvency Resolution Process ... (Para 34) ... ... Facts of the case: ... The applicant, a Resolution Professional, sought an extension for the ... ... ... Ratio Decidendi: The court emphasized that extensions must align with the IBC's objectives of timely resolution and value ... & Ors., Civil Appeal No. 1808 of 2020 dated 02.05.2025, the RP ....
2025 Supreme(Online)(NCLT) 3778 • India - National Company Law Tribunal
Sh. Praveen Gupta, Member (Judicial), Sh. Ashish Verma, Member (Technical)
The court ultimately found that the CoC's action to initiate a bidding process for price discovery without a valid basis was procedurally ... In support to his contention, the Applicant relies on the judgment passed by the Hon’ble Supreme Court in Kalyani Transco, v. Bhushan Power and Steel Ltd., (Civil Appeal No. 1808 of 2020), which states as follows: “59... ... In Kalyani Transco versus Bhushan....
2025 Supreme(Online)(NCLT) 3683 • India - National Company Law Tribunal
SMT. BIDISHA BANERJEE, CMDE. SIDDHARTH MISHRA, JJ
(Paras 25, 26, 27) ... ... (C) Legal Authority - Court recognizes authority ... Bhusan Power and Steel Ltd and Others (Civil Appeal No. 1808 of 2020)’ discussed the powers of NCLAT vis a vis provisions under PMLA 2002 and laid down the law in this regard. […] xxx xxx xxx 75. ... (Emphasis Added) Effect of “Bhushan Power and Steel Ltd.” 22. In Kalyani Transco v. Bhushan #HL_STA....
2025 Supreme(Online)(NCLAT) 463 • India - National Company Law Appellate Tribunal
Naresh Salecha, J
(Paras 15, 48) ... ... Facts of the case: ... Multiple appeals from involved parties contesting ... (Paras 1, 2, 48, 58) ... ... (B) Resolution Plans - Approval ... The appeals were dismissed and the integrity of the CIRP process was enforced. ... (ii) We take into consideration the recent judgement of the Hon’ble Supreme Court of India delivered on 02.05.2025 in the matter of Kalyani Transco vs. M/s Bhushan Power and #HL_STAR....
2025 Supreme(Online)(SC) 10640 • India - Supreme Court
*Bela M. Trivedi, Satish Chandra Sharma, JJ.
... 2. These Civil Appeals were tagged along with the Civil Appeal No.1808/2020 filed by Kalyani Transco against Bhushan Power and Steel Ltd. and Others along with the other Civil Appeals. ... 3. ... The Civil Appeal No. 1808 of 2020 (Kalyani Transco vs. M/s. Bhushan Power ....
2025 Supreme(Online)(NCLT) 3089 • India - National Company Law Tribunal
& Ors., Civil Appeal No. 1808 of 2020 dated 02.05.2025, the RP has conducted 36th CoC meeting on 26.05.2025. ... beyond the statutory timelines, in view of the judgment of the Hon’ble Supreme Court in Kalyani Transco Versus M/s Bhushan Power and Steel Ltd. ... The Hon’ble Supreme Court judgment in the case of Committee of Creditors of Essar #H....
2025 Supreme(Online)(NCLT) 5473 • India - National Company Law Tribunal
This Tribunal further derives guidance from the recent judgment of the Hon’ble Supreme Court in Committee of Creditors of Bhushan Power & Steel Ltd. v. JSW Steel Ltd. ... Entertaining such a challenge at this stage would be contrary to the principle of finality laid down by the Supreme Court in Bhushan Power & Steel, and would undermine the binding effect of the resolution/liquidation framework un....
Filter by Legal Phrase
