IBC Update: Supreme Court Declares JSW Steel’s Acquisition of Bhushan Power as Illegal, Orders Liquidation

In a landmark judgment dated May 2, 2025, the Supreme Court of India annulled JSW Steel’s ₹19,700 crore acquisition of Bhushan Power and Steel Ltd. (BPSL), citing violations of the Insolvency and Bankruptcy Code (IBC). The Court ordered the liquidation of BPSL, emphasizing that the resolution plan failed to comply with mandatory provisions, including Section 29A eligibility and adherence to prescribed timelines.

Our latest Solve-ency update decodes this crucial ruling and its impact on insolvency jurisprudence.

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Tribunal Broadens ‘Professional Services’ Scope Under India-Sri Lanka DTAA

In a significant ruling, the Delhi Tribunal clarified that ‘professional services’ under Article 14 of the India-Sri Lanka DTAA encompass specialized services like spa consultancy. Consequently, payments to non-residents for such services aren’t taxable in India if the recipient doesn’t meet the 183-day presence requirement.

The Tribunal also emphasized that, per the Supreme Court’s decision in GE India Technology Centre, no tax deduction at source is necessary when the income isn’t chargeable to tax in India.

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Test to determine supervisory nature of duties depends upon the nature of work attached to the job

The Bombay High Court has clarified that for determining whether an employee is engaged in a supervisory capacity under the Sales Promotion Employees (Conditions of Service) Act, 1976, the key consideration is the nature of duties performed, not the employment status of the persons being supervised.

The Court emphasized that even supervision over third-party personnel (such as distributor sales staff) may still qualify as “supervisory capacity” under Section 2(d), if the nature of work reflects oversight and direction.

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IBC Update: Supreme Court clarifies treatment of PUFE recoveries in resolution plans

In a recent judgment in Piramal Capital and Housing Finance Limited vs. 63 Moons Technologies Ltd & Others, the Supreme Court has clarified key aspects relating to PUFE (Preferential, Undervalued, Fraudulent, Extortionate) transactions under the IBC. The Court upheld the Resolution Plan approved by the NCLT, affirming that the distribution of recoveries from proceedings under Section 66 (Fraudulent/Wrongful Trading) falls within the commercial domain of the CoC and the resolution applicant.

Our latest Solve-ency update decodes this critical ruling and its implications for future resolution plans.

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Customs and GST Alert – April 2025

We are pleased to share with you the link to our newsletter on the latest GST and Customs Developments. The newsletter covers recent judgments and regulatory updates in the GST and Customs space in India.

We trust that you will find the same useful.

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