BPSL assets: Govt to counter ED’s contention on JSW Steel

For speedy resolution of Bhushan Power and Steel (BPSL), the ministry of corporate affairs (MCA) is likely to counter the Enforcement Directorate’s contention that preferred bidder JSW Steel cannot seek to ring-fence BPSL and its assets after take-over since Section 32A of the Insolvency and Bankruptcy Code (IBC) does not apply retrospectively.

In its affidavit to the National Company Law Appellate Tribunal (NCLAT) submitted on January 17, the ED said since the amendment came into force after JSW Steel’s resolution plan was approved, JSW Steel cannot seek benefits accrued under the Section. JSW Steel’s resolution plan for BPSL was approved by the National Company Law Tribunal on September 5, 2019; while Section 32A was notified on December 28, 2019.