JSW-BPSL Saga: Let It Be Or Let It Go

Beyond legal infirmities, Supreme Court's recent order raises systemic concerns. The finality and predictability of resolution process will be severely undermined.

THE RECENT SUPREME Court judgment in the matter of JSW Steel's acquisition of Bhushan Power and Steel Limited (BPSL) has delivered a significant setback to the Insolvency and Bankruptcy Code (IBC). More than four years ago, JSW acquired BPSL through the IBC process by paying *19,700 crore to banks, employees, operational creditors, and statutory authorities. Yet, on appeal by the erstwhile promoters challenging the National Company Law Appellate Tribunal's (NCLAT) order, the Supreme Court overturned JSW's acquisition and directed the liquidation of BPSL. Notably, the court invoked its extra- ordinary powers under Article 142 of the Constitution, which empowers it to do "complete justice "between the parties.