# In the matter of Bhushan Power and Steel Limited CP (IB) -202(PB)-2017

> NCLT judgment dated 2019-09-05. Citation: TCN-2019-NCLT-01546. Punjab National Bank initiated corporate insolvency resolution process (CIRP) against Bhushan…

- **Court:** NCLT
- **Order date:** 5 Sept 2019
- **Citation:** TCN-2019-NCLT-01546
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhushan-power-and-steel-limited-cp-ib-202pb-2017-cea3c896

## Summary

### Background

Punjab National Bank initiated corporate insolvency resolution process (CIRP) against Bhushan Power & Steel Limited (BPSL) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 26.07.2017, leading to the commencement of CIRP and imposition of a moratorium. An interim Resolution Professional (RP) was appointed, who invited claims from stakeholders. The RP received claims from financial and operational creditors amounting to INR 4,72,04,51,78,073.88 and INR 6,21,37,61,735 respectively. The RP convened 24 meetings of the Committee of Creditors (CoC). An advertisement was issued inviting resolution plans, and thirteen potential resolution applicants expressed interest. A Virtual Data Room (VDR) was set up. Tata Steel Limited and JSW

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## Facts

Punjab National Bank filed C.P. No. (IB)-202(PB)/2017 against Bhushan Power and Steel Limited (BPSL) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 26.07.2017, initiating the Corporate Insolvency Resolution Process (CIRP). An interim Resolution Professional (RP) was appointed, who received claims from financial creditors (INR 4,72,04,51,78,073.88) and operational creditors (INR 6,21,37,61,735). The RP convened 24 meetings of the Committee of Creditors (CoC). An advertisement was issued inviting resolution plans, and 13 potential applicants expressed interest. Tata Steel Limited and JSW Steel Limited submitted resolution plans. The CoC rejected a plan from Liberty House Group due to late submission, leading to legal challenges.

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## Issues and analysis

### Issue 1: Whether the erstwhile members of the Board of Directors are entitled to a complete copy of the …

**Ratio:** The principle of substantial compliance with the requirements of natural justice is

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**Reasoning:** The NCLT reasoned that the erstwhile members of the Board of Directors were given

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**Interpretation:** The court interpreted the requirements of natural justice and the judgment in

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**Application:** The NCLT applied the principle of substantial compliance to the facts of the

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## Parties

- **Judges:** CHIEF JUSTICE…; SH. S.K MOH…
- **Appellants:** Punjab National…
- **Respondents:** Bhushan Power &…

## Timeline

- **2017-07-26 — Admission of…**: Punjab National Bank's petition against Bhushan Power and Steel Limited was admitted,…
- **2017-07-28 — Invitation of…**: The Interim RP invited claims from all stakeholders, including financial creditors of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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