The Supreme Court on Thursday recalled its controversial May 2 verdict that had ordered the liquidation of Bhushan Power & Steel Limited (BPSL) while setting aside a resolution plan of JSW Steel Limited for the ailing firm.

“Prima facie are of the view that the impugned judgment does not correctly consider the legal position as has been laid down by a catena of judgments…we also take into account ground realities that an estimated 25,000 persons can be thrown out of their livelihoods…” a special bench of Chief Justice B.R. Gavai and Justice Satish Chandra said in an order.

The court passed the order on a review petition filed by JSW Steel against the top court’s May 2 judgment rejecting its interim resolution plan to revive debt-hit BPSL.

The bench on Thursday, while agreeing to recall the May 2 judgment, posted the matter for further consideration next Thursday. During the hearing, the bench recorded the submission of Solicitor General Tushar Mehta, representing the Committee of Creditors (CoC), and senior advocate Neeraj Kishan Kaul for JSW Steel, who both assailed the impugned order, while senior advocate Dhruv Mehta, representing Kalyana Transco — an operational creditor of BPSL, opposed the review petition and justified the May 2 judgment.

The apex court recorded the submissions of Mehta and Kaul that the May 2 order was passed on incorrect information and relying on arguments which were not advanced during the earlier hearing.

Article 142, which empowers the Supreme Court to pass any judgment/decree/orders to render complete justice to any litigant, should not be used to do any injustice, the CJI said, referring to the earlier judgment being passed under Article 142 of the Constitution.

On May 26, the apex court had halted the liquidation proceedings of bankrupt Bhushan Steel Limited on steel major JSW’s plea, whose earlier ₹19,700-crore resolution package was rejected by the top court on the grounds of various irregularities.

Earlier on May 2, a bench of Justice Bela M Trivedi (since retired) and Justice Satish Chandra had quashed the resolution plan of JSW, , approved by the NCLT and NCLAT, on grounds of large scale illegalities.