Companies

BPSL case: Supreme Court directs CoC to clarify stand on JSW Steel petition

Our Bureau Mumbai | Updated on June 10, 2020 Published on June 10, 2020

Next hearing on July 6

The Supreme Court has directed parties involved in the Bhushan Power and Steel (BPSL) insolvency case to file additional documents and affidavit within two weeks.

The court also allowed non-applicants to file a reply affidavit to the interlocutory application for clarification sought by JSW Steel in April.

The apex court also directed the Committee of Creditors to clarify on the application filed by JSW Steel.

The next hearing in the case is slated for July 6.

While hearing a petition filed by BPSL promoters in March, the Supreme Court refused to stay the resolution plan and said if JSW Steel makes the payment for purchase of BPSL and loses the case, lenders have to return the money to JSW Steel.

Following this, JSW Steel pleaded not to treat the company as a defaulter if it doesn’t make the payment for now.

Clarification on payment

JSW Steel in a statement in April said it has been legally advised that it is not obligatory to pay creditors as per the resolution plan since the matter is subjudice in the Supreme Court.

“Any allegation that JSW has not implemented the resolution plan has no substance,” it said.

Further, JSW Steel filed an application in April in the apex court seeking clarification whether making of payment for the deal is optional or mandatory.

On Wednesday, the Supreme Court asked the CoC to clarify its stand on JSW Steel’s application.

The National Company Law Appellate Tribunal had approved the ₹19,500-crore resolution plan filed by JSW Steel for taking over the bankrupt BPSL.

However, the Enforcement Directorate had attached the factory being sold to JSW Steel as part of its investigation against the promoters of BPSL.

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Published on June 10, 2020
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