Analyzing Diverging Judgements in BPSL and DHFL Cases: Victim Perspectives and the Fragility of the IBC
Analyzing Diverging Judgements in BPSL and DHFL Cases: Victim Perspectives and the Fragility of the IBC Analyzing Diverging Judgements in BPSL and DHFL Cases: Victim Perspectives and the Fragility of the IBC Posted on 13th May, 2025 (GMT 17:39 hrs) ABSTRACT The article examines two Supreme Court rulings under the Insolvency and Bankruptcy Code (IBC) that reveal troubling inconsistencies. In the BPSL case, JSW Steel’s ₹19,350 crore resolution plan—initially approved by the Committee of Creditors (CoC) and NCLT—was overturned by the Supreme Court in May 2025, citing procedural lapses such as delay, improper financial instruments, and non-compliance with Section 29A. The judgment criticized the CoC and Resolution Professional for dereliction of duty, raising concerns over investor trust. Conversely, in the DHFL case, where Piramal Capital’s resolution plan addressed ₹87,248 crore in claims, the Court upheld the plan in April 2025 despite allegations of illegality, irregula...