In Brief
In this landmark case involving Bhushan Power and Steel Limited (BPSL), the Supreme Court allowed civil appeals challenging a Resolution Plan approved by lower tribunals. The Court found that the Resolution Professional failed to verify mandatory compliance requirements under the Code, the Committee of Creditors did not exercise genuine commercial wisdom, and JSW (the successful resolution applicant) willfully delayed implementation for about two years without justification despite the plan being binding. The Court held that merely because the Code is silent on implementation timelines, tribunals cannot grant excessive leeway to resolution applicants to violate plan terms. The Court quashed the Resolution Plan, rejected it as non-compliant with mandatory provisions, and directed that BPSL be liquidated under Chapter III of the IBC.
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