Judicial Joust Jolts Justiciable Journey

The Supreme Court has fixed July 31 to hear pleas reviewing its May 2 verdict that invalidated JSW Steel Limited’s resolution plan for Bhushan Steel and Power Limited. Chief Justice B R Gavai & Justice Satish Chandra Sharma granted an open-court hearing, responding to requests from BSPL’s former promoters & other stakeholders. “Application for oral hearing is allowed,” the bench directed. This decision underscores the judiciary’s recognition of procedural complexities surrounding the insolvency case.

Promoters’ Petition Prolongs Procedural Puzzle

Former promoters, including Sanjay Singhal, Brij Bhushan Singhal & Neeraj Singhal, argued for open-court reconsideration. Their plea challenges the apex court’s finding that the resolution plan violated the Insolvency & Bankruptcy Code. Legal firm Karanjawala and Co. confirmed filing the review petition. The promoters allege that liquidation was pursued hastily without exhausting JSW Steel’s legal remedies, seeking to halt the process pending detailed judicial review.

Resolution Reversal Reveals Regulatory Rifts

The May 2 judgment lambasted all principal stakeholders, the resolution professional, Committee of Creditors & National Company Law Tribunal—for enabling what it called a “flagrant violation” of the IBC. “The resolution professional had utterly failed to discharge statutory duties,” the court held, criticising lapses that undermined commercial prudence. Such observations highlighted structural gaps in the resolution process, questioning the sanctity of approved plans.

Legal Labyrinth Limits Liquidation Leverage

JSW Steel Limited, alongside CoC & the resolution professional, filed review petitions on June 25. Pending these pleas, the Supreme Court, through a special leave petition on May 26, ordered status quo on BSPL’s liquidation. This pause temporarily restrained the National Company Law Tribunal from moving forward, reflecting judicial caution against irreversible steps before full deliberation. The intricate interplay of appeals & liquidation risk frames a complex legal landscape.

Commercial Conundrum Constrains CoC Consensus

The court found the CoC had failed to exercise commercial wisdom in approving JSW’s plan, which contravened IBC provisions. By overlooking mandatory requirements, stakeholders invited judicial intervention. This decision not only affects the CoC’s authority but also recalibrates expectations for diligence in corporate insolvency cases. Such precedents may prompt tighter scrutiny of future resolution plans across India’s banking & industrial sectors.

Statutory Shortcomings Spark Systemic Scrutiny

The court’s criticism extended to procedural lapses during the Corporate Insolvency Resolution Process, noting that essential statutory safeguards were ignored. By spotlighting systemic weaknesses, the judgment reiterates the sine qua non of adhering strictly to IBC mandates. This episode may push regulators & professionals to revise practices, aligning procedural rigor with legislative intent. As legal firm Karanjawala and Co. observed, procedural discipline becomes central to corporate recovery.

Open-Court Opportunity Offers Obfuscation Overhaul

By allowing an open-court hearing, the judiciary aims to dispel perceived obfuscation in prior proceedings. This platform enables stakeholders to articulate concerns transparently, possibly clarifying contested points. Legal experts note such hearings, though rare, reinforce judicial accountability & enhance public trust in complex insolvency adjudications. The upcoming session could prove pivotal for both BSPL’s fate & the jurisprudence governing corporate distress.

Verdict Vigilance Validates Value of Review

The apex court’s decision to revisit its own verdict underscores the principle of judicial self-correction. While liquidation remains an option, review petitions offer an avenue to address alleged errors & recalibrate outcomes. As the July 31 date approaches, industry observers watch closely, recognising its implications for insolvency law, corporate governance & the broader industrial credit ecosystem.

NSE: JSWSTEEL

• Current Price: ₹1,034.90

• Day Change: +₹6.10 / +0.6% from prior close ₹1,028.80.

RSI (14‑day)

• Value: ~51.7 → Neutral zone (neither overbought nor oversold).

MACD

• MACD line at ~2.63, indicating a Buy momentum signal.

ADX

• Around 20.9 → below 25 suggests a weak trend; not strongly directional currently (Investing.com).

Moving Averages (SMA/EMA)

• 50‑day SMA: ~₹1,032.60 – Buy signal

• 200‑day SMA: ~₹1,030.82 – Buy signal

• Shorter MAs (5‑day, 10‑day) are slightly above current prices, suggesting some near term softness (Investing.com).

In total, 8 moving‑average indicators show Buy, 4 show Sell, resulting in a slightly bullish bias from MAs (Investing.com).

Support & Resistance Zones

Using pivot‑point levels (Classic / Fibonacci / Camarilla / Woodie):

• Near Support: ₹1,036 / ₹1,038 zones

• Pivot (~middle): ₹1,040.33

• Resistance: ₹1,042–1,046 area)

Given current close just below the pivot, watch for possible pullback toward support or break above resistance to signal further upside.

Fibonacci retracement levels (from recent swing low ~₹854 to swing high ~₹1,075):

• Retracement zones: 23.6% (₹975), 38.2% (₹950), 50% (₹964), 61.8% (~₹980) — significant clusters near ₹975‑₹990 could act as medium‑term support zones,

Key Takeaways

• Supreme Court to hear review pleas on July 31 over Bhushan Steel verdict.

• Former promoters & JSW Steel challenge the May 2 ruling citing procedural lapses.

• Court earlier criticised stakeholders for breaching Insolvency & Bankruptcy Code.