**NCLT Postpones Bhushan Power & Steel Insolvency Case to May 30**
The National Company Law Tribunal (NCLT) has postponed the insolvency proceedings for Bhushan Power & Steel Ltd (BPSL) to May 30. This decision comes as the tribunal prepares to address a plea from former promoter Sanjay Singal, who is seeking to enforce a Supreme Court ruling from May 2. This ruling invalidated JSW Steel’s ₹19,700 crore resolution plan and instructed the NCLT to commence liquidation proceedings.
The adjournment was requested by Solicitor General Tushar Mehta, representing the Union government and other stakeholders, who asked the tribunal to delay issuing any notices. He emphasized the importance of allowing Singal to identify and include all necessary parties before the case is formally heard. “Let him consider whom he would wish to join, or who are necessary parties before even notice is issued,” Mehta stated.
The NCLT’s principal bench, led by Justice R. Sudhakar, concurred with Mehta’s request and directed Singal’s counsel to ensure all relevant stakeholders are included before the next hearing. The bench remarked, “So all of you should think over it. Yes. We just can’t take a decision.”
During the hearing, Mehta indicated that stakeholders are exploring various legal avenues in light of the Supreme Court’s decision, including the possibility of initiating a new Corporate Insolvency Resolution Process (CIRP) for BPSL. “Every option is under consideration because this will have to be clarified by the Honourable Court,” he noted. He further expressed concerns regarding BPSL’s assets, which have been seized by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).
Mehta highlighted that Section 32A of the Insolvency and Bankruptcy Code (IBC) was designed to protect resolution applicants from past criminal liabilities once a resolution plan is approved. With the current resolution plan now void, he raised questions about the survival of ED attachments and the inclusion of such assets in liquidation proceedings. “Now, with the resolution plan set aside, even those ED attachments may be revived,” he pointed out.
In response, Singal’s counsel urged the tribunal to appoint a custodian for the company’s assets to prevent potential misuse or diversion. “Someone must be appointed to take control of the assets to prevent siphoning,” the counsel argued.
The NCLT has stated that it will consider all submissions and provide further directions on May 30. The Supreme Court’s ruling on May 2, which overturned a resolution plan that had been in place for five years, has sent shockwaves through the insolvency landscape.
**FAQ**
*What is the significance of the NCLT’s decision regarding BPSL?*
The NCLT’s decision to postpone the insolvency case allows for the inclusion of all necessary stakeholders and addresses legal complexities arising from the Supreme Court’s ruling, which has significant implications for the future of BPSL and its assets.
