# In the matter of Bhushan Power & Steel Limited vs. Union of India & Anr.

> HC judgment dated 2025-01-30. Citation: TCN-2025-HC-00049. The case involves a petition filed by Bhushan Power & Steel Limited (BPSL) seeking the quashing of…

- **Court:** HC
- **Order date:** 30 Jan 2025
- **Citation:** TCN-2025-HC-00049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/bhushan-power-steel-limited-vs-union-of-india-anr-bfa28e67

## Summary

### Background

The case involves a petition filed by Bhushan Power & Steel Limited (BPSL) seeking the quashing of ECIR NO. DLZO-I/02/2019 initiated under the Prevention of Money Laundering Act, 2002 (PMLA), along with all consequential proceedings arising from it, including an order issuing process dated 17.01.2020. The Enforcement Directorate (ED) initiated proceedings against BPSL based on alleged money laundering related to a bank fraud of Rs. 47,204 Crores. The National Company Law Tribunal (NCLT) had previously admitted an insolvency application against BPSL, and a resolution plan by JSW Steel Ltd. (JSW) was approved. However, the ED attached BPSL's assets, leading to appeals and challenges regarding the jurisdiction of the ED in light of Section 32A of the Insolvency and

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## Facts

The key facts are as follows: 1. On 26.07.2017, NCLT admitted an application by Punjab National Bank (PNB) under Section 7 of IBC, initiating CIRP against Bhushan Power & Steel Limited (BPSL). 2. JSW Steel Ltd. (JSW) emerged as the successful resolution applicant during the CIRP of BPSL. 3. On 05.04.2019, CBI registered an FIR against BPSL, its Chairman, Directors, and others for offences under the Indian Penal Code and the Prevention of Corruption Act. 4. On 25.04.2019, the Enforcement Directorate (ED) recorded an ECIR against the Corporate Debtor based on the scheduled offences mentioned in the CBI's FIR, suspecting money laundering. 5. On 05.09.2019, NCLT conditionally approved the resolution plan of JSW under Section 31 of the IBC but did not expressly grant

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## Issues and analysis

### Issue 1: Whether the liability of a corporate debtor for an offence committed prior to the commencement of …

**Ratio:** Section 32A(1) of the IBC provides that the liability of a corporate debtor for an

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**Reasoning:** The court reasoned that a plain reading of Section 32A of the IBC indicates that once a

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**Interpretation:** Section 32A of the IBC provides immunity to the corporate debtor from

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**Application:** In this case, the court applied Section 32A(1) of the IBC to the facts, noting

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## Parties

- **Judges:** MANMEET PRITAM…
- **Appellants:** Bhushan Power &…
- **Respondents:** M/S BHUSHAN POWER…; UNION OF INDIA &…
- **Other parties:** Kohi…

## Timeline

- **2017-07-26 — CIRP Init…**: NCLT admitted an application by Punjab National Bank (PNB) under Section 7 of IBC,…
- **2019-04-05 — CBI FIR…**: CBI registered an FIR against BPSL, its Chairman, Directors, and others for offences…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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