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India's top Court to reconsider order cancelling JSW Steel's $2.3 Billion Bhushan Power Deal

The top court in India said Thursday that it would review its decision to halt the $2.3 billion acquisition of Bhushan Power and Steel by Indian steelmaker JSW Steel. It claimed that this order failed to take into account past precedents.

The Supreme Court of India rejected the JSW Steel deal to buy Bhushan Power and Steel in May. This was six years after JSW Steel had been approved. It upset buyers and cast a shadow on Indian bankruptcy reforms that were introduced in 2016.

JSW Steel then asked the top court for a review of its ruling.

Judges heard the review appeal on Thursday and stated that the ruling quashing the agreement did not take into account the legal position established in past precedents.

The top court said: "We find that this is a case in which the judgment under review should be recalled, and the matter must be considered again."

The Supreme Court slammed the deal in May after finding "a whole spectrum of flaws and lacunas" in the process of taking over the company. It was one of the largest insolvency transactions in Indian history.

The court also ordered that the banks return any funds they have recovered from JSW during its takeover.

It halted the liquidation process a few weeks later, giving JSW Steel time to request a review.

The Supreme Court will next hear the case on August 7. Reporting by Arpan chaturvedi from New Delhi. Writing by Abinaya Vijayaraghavan. Editing by Janane Vekatraman, Mark Potter.

(source: Reuters)