NCLT places Bhushan Power liquidation on maintain until August after SC order | Company Business News-OxBig News Network

The National Company Law Tribunal (NCLT) on Tuesday deferred liquidation proceedings for Bhushan Power and Steel Ltd (BPSL) until August, following a 26 May Supreme Court order directing establishment within the matter.

“In the wake of the Supreme Court order, hearing stands deferred till 1 August,” the NCLT-Delhi mentioned.

The Supreme Court on Monday granted interim reduction to JSW Steel, which had sought a pause on the BPSL liquidation proceedings to file a evaluation petition difficult the highest courtroom’s 2 May verdict. 

That ruling quashed JSW’s ₹19,300 crore decision plan for the bankrupt metal firm and ordered its liquidation.

The Supreme Court allowed JSW to file the evaluation petition inside the statutory limitation interval, noting that persevering with with liquidation might jeopardise the evaluation.

Accordingly, the NCLT was directed to keep up the established order till additional orders.

Meanwhile, the highest courtroom indicated that the evaluation petition is prone to be heard after the courtroom’s summer time trip, as soon as it’s filed.

The newly constituted NCLT bench—comprising Justice Ashok Kumar Bhardwaj (judicial member) and Reena Sinha Puri (technical member)—will now hear numerous petitions associated to the case, together with one filed by former promoter Sanjay Singhal, in search of enforcement of the apex courtroom’s 26 May order.

The new bench took over the case after NCLT president Justice Ramalingam Sudhakar, whose bench had earlier been listening to the case, determined to reassign the matter.

Mint earlier reported how, throughout an open courtroom listening to, the NCLT president raised considerations concerning the scarcity of accessible members to revisit such a fancy, high-stakes insolvency matter—particularly one which had been settled practically 5 years in the past.

With dues exceeding ₹47,200 crore, BPSL was among the many first 12 giant mortgage defaulters recognized by the Reserve Bank of India (RBI) in 2017 to be bought or liquidated underneath the Insolvency and Bankruptcy Code (IBC).  

JSW Steel’s ₹19,300 crore decision plan was accepted by the NCLT in September 2019 and upheld by the National Company Law Appellate Tribunal (NCLAT) in February 2020.

However, on 2 May 2025, the Supreme Court struck down the decision plan, performing on petitions filed by Singhal and sure operational collectors. 

The courtroom cited materials non-compliance with key provisions of the IBC—significantly the failure to strictly implement the plan inside the accepted timeline—as grounds for its choice.