Page 21 - Banking Finance June 2025

LEGAL UPDATE

SC Ruling on Bhushan

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Power Liquidation Raises
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Concerns Over IBC Stabil- Ô Ô Ô Ô Ô » »» »¹ ¹¹ ¹ ¿ ¿¿ ¿ ´ ´´ ´
ity
The Supreme Court's decision to annul
JSW Steel's resolution plan for Bhushan Ò»©­
Power and Steel and order liquidation
has sparked alarm among legal and fi-
nancial experts, who view it as a sig-
nificant setback to India's insolvency
framework.

Experts believe this ruling could dis-
courage future bidders from participat-
ing in the resolution process, fearing Right to Digital Access Part of Right to Life, SC Tells
retrospective invalidation. "This deci- Centre
sion has serious implications for the
IBC. This would discourage applicants The Supreme Court has declared that access to digital services is a funda-
mental part of the right to life under Article 21 and directed the Centre to
from submitting plans on apprehen-
amend digital KYC norms to accommodate persons with disabilities. The rul-
sions that it might be undone some-
day," said M S Sahoo, a distinguished ing comes in response to petitions from visually impaired citizens and acid
professor at National Law University, attack survivors, seeking inclusive digital access.
Delhi. Justice R Mahadevan, writing for the bench also comprising Justice J B
Pardiwala, stated, "In the contemporary era, where access to essential
He warned that such judgments not
only question past resolutions but also services is increasingly mediated through digital platforms, the right to
create future uncertainty in imple- life must be re-interpreted in light of these technological realities." The
menting the Insolvency and Bank- bench highlighted that the digital divide perpetuates exclusion of not only
disabled persons but also rural communities and senior citizens.
ruptcy Code (IBC). The Bhushan Power
case, once celebrated as a successful The court instructed ministries to ensure all public and private regulated
resolution, is now a cautionary tale entities adopt accessibility standards, appoint nodal officers for compliance,
that could shake investor confidence and mandate accessibility audits involving persons with blindness in app or
and pose challenges to ongoing and website testing.
future insolvency cases across sectors.
tor General N Venkataraman, citing money is wagered on outcomes. This

Centre to SC: Betting Re- horse racing as an example of an ac- legal stance directly impacts India's
tivity involving inherent uncertainty. booming online gaming industry, which
mains Gambling, Skill
His comments came during hearings on has long contended that games like
Doesn't Change Tax Treat- petitions filed by online gaming firms poker or fantasy sports involve skill and
ment challenging the imposition of 28% GST should be treated differently under tax
on all real-money games. A two-judge laws.
The Centre has reaffirmed before the
Supreme Court that all forms of bet- bench comprising Justices J B
Pardiwala and R Mahadevan is presid- SC Empowers Courts to
ting, regardless of whether based on
ing over the case.
skill or chance, will be classified as Modify Arbitral Awards,
gambling and taxed accordingly under The Centre maintained that the GST
GST laws. "Betting can never be a framework does not distinguish be- Ends Legal Uncertainty
game of skill," argued Additional Solici- tween games of chance and skill when In a significant ruling, a five-judge Con-

BANKING FINANCE | JUNE | 2025 | 19