New Delhi, May 7 -- Last week, India's Supreme Court decided to annul JSW Steel's Rs.19,700-crore acquisition of Bhushan Power & Steel Ltd (BPSL) and ordered its liquidation, causing a storm in the country. This raises four issues: a) The apex court's invocation of Article 142 of the Constitution, which suggests plausible misuse of judicial power; b) the credibility of the Insolvency and Bankruptcy Code (IBC) and National Company Law Appellate Tribunal (NCLAT); c) the long time gap between the takeover and court judgment; and d) India's global economic credibility.

Informed by expert advice and historical precedents, we should express deep concern over the possibility of this ruling's overreach, given how it could destabilize the IBC-a f...