On May 2, 2025, the Supreme Court (in the case of Kalyani Transco vs Bhushan Power and Steel), reserves the JSW Resolution Plan, pointing out the violations of the IBC provisions
Kalyani Transco Private Ltd emerged as a fundamental petitioner in the case of high profile insolvency that involves the acquisition of JSW Steel by Bhushan Power and Steel Limited (BPSL).
As BPSL operational creditor, Kalyani Transco challenged the resolution plan of 19.7 billion JSW Steel rupees. Together with other recurring, including former BPSL promoter, Sanjay Singgal and creditors such as Jaldhi Overseas and CJ Darcl Logistics, the company based in Odisha challenged compliance with the plan with the insolvency and bankruptcy code (IBC).
On May 2, 2025, the Supreme Court (in the case of Kalyani Transco vs Bhushan Power and Steel), reserves the JSW resolution plan, pointing out the violations of the IBC provisions, including late implementation. The court ordered the BPSL settlement.
Who is Kalyani Transco?
Kalyani Transco is an emblematic company or Kalyani group of Odisha, Reigstered Office in Jharsugudha; It is dedicated to the road transport business of coal and aluminum ashes with Vedanta LTD as its main commercial partner, according to infomeric qualifications. Other important names included, NTPC, Hindalco Industries, etc.
The grades agency in a January report had mentioned, Kalyani Transco to have a turnover (independent) or ₹ 243.37 million rupees, and a PAT (profits after tax) or ₹ 21.92 million rupees, as of March 31, 2024. The billing of the previous year was ₹ 450.94.
In fiscal year24, Kalyani Transco executed only the high value “that led to a modernation in the upper line,” the report mentioned. Despite the fall in the upper line, the operating margin improved 15.78 percent in fiscal year 200 at 13.41 percent N FY23. The PAT margin has also improved 8.77 percent in fiscal year 2000 compared to 6.52 percent in fiscal year 2013.
In October 2024, Kalyani Transco has a book of orders not executed of approximately ₹ 272.34 million rupees that will be executed in the next 12-18 months, as noted in the report. .
The company is jointly promoted by tapas Ranjan Panigrahi and Manas Ranjan Panigrahi. Ranjan Panigrahi tapas did not receive calls from Commercial. The messages requesting a comment remain unanswered.
Legal aspect
According to Vijay K Singh, main partner of the S&A Law offices, the order of the Supreme Court “shows several systematic problems within the IBC that hinders the effective implementation of the Resolution Plan and undermines its objective.”
“The IBC lacks adequate provisions to make RPS and COC members responsible for acting negligently and collapse with successful resolution applicants (MRS), which compromises the interest of creditors and interested parties. Business line.
The mechanism for the application of the resolution “is weak, and the criminal provisions are rarely invoked against MRS,” he added.
Singh said operating creditors are unfairly treated and discriminatory against financial creditors.
Posted on May 6, 2025