**NCLT Postpones Liquidation of Bhushan Power and Steel Ltd Until August**
The National Company Law Tribunal (NCLT) has postponed the liquidation proceedings for Bhushan Power and Steel Ltd (BPSL) until August, following a Supreme Court order issued on May 26 that mandated maintaining the status quo. The NCLT-Delhi announced, “In light of the Supreme Court order, the hearing is deferred until August 1.”
On May 29, the Supreme Court granted temporary relief to JSW Steel, which requested a halt to the BPSL liquidation process in order to file a review petition against the court’s May 2 ruling. This ruling had annulled JSW’s ₹19,300 crore resolution plan for the financially troubled steel company and ordered its liquidation. The Supreme Court allowed JSW to submit the review petition within the statutory timeframe, emphasizing that proceeding with liquidation could jeopardize the review process. Consequently, the NCLT was instructed to maintain the current status until further notice.
The Supreme Court indicated that the review petition would likely be heard after the court’s summer recess, once it is filed. A newly formed NCLT bench, consisting of Justice Ashok Kumar Bhardwaj (judicial member) and Reena Sinha Puri (technical member), will now address various petitions related to the case, including one from former promoter Sanjay Singhal, who is seeking enforcement of the Supreme Court’s May 26 order. This new bench took over the case after NCLT president Justice Ramalingam Sudhakar reassigned it, citing concerns about the limited availability of members to handle such a complex insolvency matter.
BPSL, with outstanding dues exceeding ₹47,200 crore, was among the first twelve major loan defaulters identified by the Reserve Bank of India (RBI) in 2017 for potential sale or liquidation under the Insolvency and Bankruptcy Code (IBC). The NCLT had approved JSW Steel’s ₹19,300 crore resolution plan in September 2019, which was later upheld by the National Company Law Appellate Tribunal (NCLAT) in February 2020. However, on May 2, 2025, the Supreme Court invalidated the resolution plan, responding to petitions from Singhal and certain operational creditors. The court cited significant non-compliance with essential IBC provisions, particularly the failure to implement the plan within the approved timeline, as the basis for its decision.
**FAQ**
**What is the current status of Bhushan Power and Steel Ltd’s liquidation proceedings?**
The NCLT has postponed the liquidation proceedings for Bhushan Power and Steel Ltd until August, following a Supreme Court order to maintain the status quo.
