On Friday, the Supreme Court reinstated JSW Steel Ltd’s ₹19,700 crore resolution plan for Bhushan Power and Steel Ltd (BPSL), overturning its earlier May ruling that had ordered the company’s liquidation. The bench, led by Chief Justice B.R. Gavai, emphasized the importance of the Committee of Creditors’ (CoC) decisions and ruled that JSW Steel’s plan—approved by 97% of lenders and cleared by NCLT and NCLAT—could not be dismissed due to delays caused by external legal hurdles, notably asset attachments by the Enforcement Directorate between 2018 and 2024. The judgment brings closure to years of legal battles, allowing JSW Steel, which has integrated BPSL into its operations, to maintain control. The court rejected lenders’ claims for ₹6,000 crore in additional recoveries, stating that interim profits belonged to JSW under its “as-is, where-is” bid. The decision restores confidence in the Insolvency and Bankruptcy Code (IBC), reinforcing resolution over liquidation. JSW’s plan, first approved in 2019, faced delays due to multiple legal challenges. Since acquiring BPSL in 2021, JSW has nearly doubled its production capacity.
SC Restores JSW Steel’s ₹19,700 Crore Plan
