Supreme Court Recalls Order Liquidating Bhushan Power, Says Article 142 Was Misused to Do Injustice

In a significant move, the Supreme Court on July 31 recalled its May 2 judgment that had directed the liquidation of Bhushan Power & Steel Ltd (BPSL) by rejecting JSW Steel’s ₹20,000 crore resolution plan.

The bench led by CJI Gavai observed that Article 142 had been wrongly invoked “to do injustice” and that the ruling ignored legal precedents and relied on incorrect facts.

The Court allowed a review, keeping all issues open for rehearing and stressed that the commercial wisdom of creditors and the livelihood of 25,000 workers couldn’t be dismissed over minor procedural lapses.

[Punjab National Bank and Anr. v Kalyani Transco and Ors.]