The Centre is yet to make up its mind on filing a review petition with the Supreme Court on its order cancelling the resolution plan of JSW Steel and the liquidation of Bhushan Steel & Power Ltd.
“The Supreme Court in its ruling has not cast any aspersion on the robustness of the Insolvency and Bankruptcy Code. It has questioned and commented on the procedures of implementing the IBC in this particular case,” said a government source, underlining that no doubts were raised by the Supreme Court on the IBC per se.
“The Court’s ruling has highlighted that in this particular case, at various stages, the way IBC was implemented does not evoke confidence and there were some grey areas,” noted the person, adding that those steps were identified and mentioned.
“The government has not made up its mind on filing a review petition,” they further said.
The Committee of Creditors of BPCL is also examining whether they will file a review petition on the Supreme Court ruling on May 2 that rejected the Rs 19,700 crore resolution plan of JSW Steel. A review petition can be filed within 30 days of the Supreme Court ruling.
However, experts raised concern over the Supreme Court ruling at the time, noting that it has raised concerns over the efficacy of the IBC, the way that insolvency proceedings are conducted, and delayed timelines. There have also been questions on whether such a ruling can impact other proceedings that have been carried out.
The Department of financial services has been looking into the order. “I already reviewed the order with all the lenders. We took a position, studied the judgment, and got our advocates’ view on the judgment. Now we are taking a view in gthe overnment on how to approach the judgment. We will finalise soon,” M. Nagaraju, Secretary, Department of Financial Services, had said earlier.
