IBC faces test again as top court hears Bhushan Power & Steel case

ED objected to the applicability of Section 32A of the Insolvency and Bankruptcy Code (IBC) to the JSW-Bhushan deal

The Supreme Court will have its task cut out in settling yet another contentious aspect of the Insolvency and Bankruptcy Code (IBC), once it starts hearing the Bhushan Power & Steel (BPSL) case.

 Although the Essar Steel judgment provided some clarity about eligibility and Section 29A, the BPSL case will test the applicability of the newly formulated Section 32A, which provides immunity to the corporate debtor.

 The Enforcement Directorate (ED), which had issued a provisional order of attachment of BPSL’s assets — valued at Rs 4,025 crore — in October 2019, has objected to the applicability of Section 32A of the insolvency