JSW-Bhushan Power, Google, Saif Ali Khan’s Royal Inheritance, and More

“I will miss Hindustan. By Hindustan I mean you all … only court where cases and lawyers from all parts of the country come.”

— Justice Sudhanshu Dhulia on his last working day as a Supreme Court judge on August 8

Fresh twists in JSW-Bhushan Power case
After four years of acquiring, reviving and turning Bhushan Power and Steel into a viable healthy company, JSW is faced with a series of hiccups that stand to unsettle this acquisition. 

The shock dealt by the top court in its liquidation order for BPSL had just been reversed by a recall order but that also meant opening a can of worms given that the Supreme Court was now meant to hear the appeals challenging JSW Steel’s resolution plan for BPSL afresh. This would mean that the acquisition itself and the amount of money that changed hands as part of the plan, everything stands to be unsettled.

The court began hearing the appeals afresh and has intended for the hearing in toto to be relatively brief. But the two sessions of submissions made by different parties so far have posed new challenges for JSW. 

Unsurprisingly, the former promoters of BPSL are seeking fresh bids for their erstwhile entity and vehemently oppose liquidation. On the other hand, the committee of creditors, which originally approved JSW’s plan for BPSL, is now laying claim over EBIDTA for the period in which the delay in implementing the plan was caused.

JSW is yet to make its submissions but if the court was to rule in favour of either of the sides between former promoters and the lender’s panel, it would mean fresh cause of concern for JSW. 

Going by the speed at which the case is progressing at the moment though, and keeping in mind that the Chief Justice of India BR Gavai, who is hearing the case, is scheduled to retire later this year, we know that the fate of the case will be made clear soon.

The Week That Was
Courts 

• The Supreme Court has paused a high court ruling that would have posed a question on the right of the Bollywood actor Saif Ali Khan and his family’s status as the legal heir to the estate of erstwhile nawab of Bhopal valuing around 150 billion rupees.
• Supreme Court agrees to hear appeals in the antitrust case against Google where the appellate tribunal had partly upheld CCI findings against the company in the Playstore policy case
• The apex court has sought the government’s response on a PIL plea that challenges Section 152 of the Bhartiya Nyay Sanhita (BNS) which is said to have brought back sedition in a stricter form without naming it as such
• Supreme Court sets a four-year deadline for states to clear electricity dues owed to power discoms, says the same should be done with minimal impact on end consumer
• Supreme Court rejects Justice Yashwant Verma’s petition that challenged the in-house inquiry committee’s findings.
• Owner of sunken MSC Elsa-3 moves Kerala High Court seeking a cap on its liability towards damage caused by the ship’s sinking. Earlier this year, the state of Kerala had damages and compensation to the tune of $14 million from the shipping company
• Supreme Court quashes exemption that was given to educational and industrial buildings from environmental norms

The Big Listings

Aug 10: Supreme Court to continue its hearing in JSW-BPSL case after allowing review of the previous ruling
Aug 20: NCLT in Ahmedabad to hear petition for Vedanta’s demerge
Aug 20: Supreme Court to hear Flipkart’s appeal against a high court which affirmed CCI probe into the company

 * The dates of hearing can change and a concrete list is prepared just a day before

Legal Moves 

• Akshay Jeet Bhat of CAM and Prasad Subramanyan of Matrix Partners set up firm, call it First Principles Law
• Abhishek Kalra rejoins Cyril Amarchand Mangaldas as partner 
• Arka Banerjee joins Veritas Law as partner 
• Rustam Mulla leaves Desai Desai Carrimjee & Mulla to join Veritas Legal