By Ashwarya Sharma, Advocate | Co-Founder & Legal Head, RB LawCorp
In Kalyani Transco v. Bhushan Power & Steel Ltd., the Supreme Court quashed an already-approved resolution plan and ordered liquidation, invoking Article 142 of the Constitution. This marks a turning point in insolvency law enforcement.
Key Highlights:
- RP’s Failures: Did not file mandatory Form H; ignored statutory duties and creditor priorities.
- CoC’s Conduct: Accepted a flawed plan despite raising red flags—undermining their “commercial wisdom.”
- JSW Steel’s Misconduct: Delayed implementation, amended plans post-approval, and misused litigation.
- Jurisdiction Issue: NCLAT had no authority to interfere in ED matters under PMLA.
- Timeline Breach: The 270-day limit under IBC was violated with no valid extension or implementation.
Conclusion:
This ruling sends a strong message—procedural compliance, transparency, and good faith are non-negotiable under IBC. Strategic delays and misuse of legal process will not be tolerated.
Read the full article here https://tiolcorplaws.com/news/details/NDI5Mzk=
(The author is a practicing advocate, Co-Founder and Legal Head of RB LawCorp.
He specializes in GST law. Suggestions or queries can be directed to
ashsharma@rblawcorp.in. The views expressed in this article are strictly
personal.)
