# In the matter of Kalyani Transco vs. Bhushan Power and Steel Ltd. & Ors.

> SC judgment dated 2025-05-02. Citation: TCN-2025-SC-00018. This case involves a batch of appeals stemming from a common impugned Judgment and Order dated…

- **Court:** SC
- **Order date:** 2 May 2025
- **Citation:** TCN-2025-SC-00018
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/kalyani-transco-vs-bhushan-power-and-steel-ltd-ors-ae57ebff

## Summary

### Background

This case involves a batch of appeals stemming from a common impugned Judgment and Order dated 17.02.2020 passed by the National Company Law Appellate Tribunal (NCLAT), New Delhi, concerning company appeals filed by various parties related to the corporate insolvency resolution process (CIRP) of Bhushan Power and Steel Limited (BPSL). The CIRP was initiated against BPSL at the instance of Punjab National Bank after the Reserve Bank of India (RBI) identified BPSL as one of the 12 big accounts for resolution under the Insolvency and Bankruptcy Code (IBC). The appeals challenge the approval of the resolution plan submitted by JSW Steel Ltd. and raise issues regarding the eligibility of JSW, the treatment of operational creditors, and the powers of the Directorate of

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## Facts

The Reserve Bank of India (RBI) identified Bhushan Power and Steel Limited (BPSL) as one of the 12 major accounts for resolution under the Insolvency and Bankruptcy Code (IBC). Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against BPSL, which was admitted by the NCLT on 26.07.2017. The Interim Resolution Professional (IRP) invited claims from stakeholders, and the Resolution Professional admitted claims of INR 4,72,04,51,78,073.88 from Financial Creditors and INR 6,21,37,61,735 from Operational Creditors. JSW, Tata Steel, and Liberty House submitted resolution plans. JSW's plan was approved by the Committee of Creditors (CoC) and subsequently by the NCLT on 05.09.2019, subject to certain conditions. The Directorate of Enforcement (ED)

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## Issues and analysis

### Issue 1: Whether the NCLT and NCLAT erred in approving the Resolution Plan of JSW, considering the …

**Ratio:** The approval of a resolution plan must strictly adhere to the mandatory provisions of the

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**Reasoning:** The court found that the Resolution Professional and the CoC had failed to ensure

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**Interpretation:** The IBC mandates strict adherence to timelines and procedural requirements to

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**Application:** The court applied the ratio to the facts by highlighting the failure of the

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## Parties

- **Judges:** BELA M. T…; SATISH CHANDRA…
- **Appellants:** KALYANI T…
- **Respondents:** Bhushan Power and…; M/S BHUSHAN POWER…
- **Other parties:** Over Tu…

## Timeline

- **2017-07-26 — Admission o…**: The NCLT admitted the Company Petition filed by Punjab National Bank for initiating the…
- **2019-09-05 — NCLT Approval of…**: The NCLT approved the Resolution Plan of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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