**Supreme Court’s Ruling Forces NCLT to Revisit Bhushan Power & Steel Case**
The Supreme Court’s groundbreaking decision to annul JSW Steel’s ₹19,700-crore resolution plan for Bhushan Power & Steel Ltd (BPSL) and mandate its liquidation has placed additional pressure on the already overburdened National Company Law Tribunal (NCLT), which is now tasked with re-evaluating the case. During a recent hearing regarding BPSL, the issue of understaffing at the NCLT was highlighted as a significant concern. NCLT President Justice Ramalingam Sudhakar expressed skepticism about the tribunal’s ability to handle such a complex bankruptcy case, which was resolved six years ago, given its limited resources.
Justice Sudhakar remarked, “The entire matter has come back to us lock, stock, and barrel.” He emphasized the daily challenges faced by the tribunal, stating, “The number of benches needs to be increased. If you want to have valuable judicial time with this pressure, it’s very difficult for any member to do that effectively.” He pointed out that even reviewing a small application requires more time due to the current workload.
He specifically requested a special bench for the Bhushan Steel case, noting that the adjudication of interlocutory applications (IAs) would require dedicated attention and time. “Where are the members?” he questioned, highlighting the strain on existing personnel.
Justice Sudhakar further noted that the current members are already stretched thin and has been advocating for an increase in the tribunal’s strength to the government and parliament. “This is what I’ve been telling parliament. Please double the number of members. At least this issue can’t continue as it is,” he urged.
His comments came during a hearing at the NCLT Delhi Principal Bench, where several creditors of BPSL have begun submitting new claims following the Supreme Court’s ruling on May 2, which invalidated the resolution plan previously approved by both the NCLT and the Committee of Creditors in 2019.
The NCLT has been handling an increasing volume of cases, clearing 179,270 cases last year alone, despite operating at only 60% of its sanctioned strength of 63 members across 16 benches nationwide. Justice Sudhakar lamented the lack of a special bench for the Insolvency and Bankruptcy Code (IBC) matters, stating, “Who appreciates that?”
The Supreme Court’s decision on May 2 to quash JSW Steel’s resolution plan and direct the NCLT to initiate liquidation proceedings has sent the case back to the tribunal, intensifying the urgency for additional resources. In March 2025, the Union government appointed benches for 21 of the 24 newly-appointed judicial and technical members of the NCLT, following persistent demands from the NCLT Bar Association and criticism from the Supreme Court regarding the tribunal’s capacity to manage its workload effectively.
**FAQ**
**What was the Supreme Court’s ruling regarding Bhushan Power & Steel?**
The Supreme Court annulled JSW Steel’s resolution plan for Bhushan Power & Steel and ordered the NCLT to initiate liquidation proceedings, returning the case to the tribunal for further review.