Supreme Court of India set aside JSW Steel’s Resolution Plan for Bhushan Steel and Power Limited; National Company Law Tribunal directed to initiate liquidation proceedings

The Supreme Court of India’s (“Supreme Court”) decision in the case of Kalyani Transco vs M/s Bhushan Steel and Power Limited1 and connected appeals raises some serious legal issues. We understand from the public domain that parties are considering filing review and curative petitions. Without expressing any views on the judgement, set out below is a summary of the key findings and directions of the Supreme Court.

Filed under:
India, Insolvency & Restructuring, Litigation, JSA, Anti-money laundering, Tata Steel Ltd, Insolvency and Bankruptcy Code (India), Supreme Court of India, National Company Law Tribunal
Authors:
Divyam Agarwal , Divyanshu Pandey , Soumitra Majumdar , Pranav Tanwar
Location:
India
Firm:
JSA
Corporate insolvency resolution process can be initiated separately and simultaneously against a corporate debtor and a corporate guarantor for the same debt and same default

In the case of BRS Ventures Investments Ltd. vs. SREI Infrastructure Finance Ltd. & Anr. the Hon’ble Supreme Court of India (“Supreme Court”) held that simultaneous insolvency proceedings against a borrower and a corporate guarantor can be initiated for the same debt and default; and that assets of a subsidiary do not form part of the corporate insolvency resolution process (“CIRP”) of its holding company.

Brief Facts

Filed under:
India, Insolvency & Restructuring, Litigation, JSA, Bank of India, State Bank of India, Insolvency and Bankruptcy Code (India), Supreme Court of India, Financial services banks, Financial services corporate
Authors:
Divyanshu Pandey , Shrijita Bhattacharya , Aaditya Shukla
Location:
India
Firm:
JSA