The Supreme Court of India has overturned its earlier May 2025 ruling and approved JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power & Steel Ltd (BPSL).
The decision marks a significant development in one of the country’s most protracted insolvency cases under the Insolvency and Bankruptcy Code (IBC).
A bench led by Chief Justice of India BR Gavai re-heard the appeal after recalling the May judgment, which had rejected the resolution plan and directed BPSL’s liquidation.
The court dismissed objections raised by BPSL’s former promoters and certain creditors, including claims for a share in the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA).
The bench emphasized that the successful resolution applicant (SRA) cannot be compelled to address claims not part of the Request for Resolution Plan (RfRP) or the approved resolution plan.
The court also noted that the delays in implementing the resolution plan were not attributable to JSW Steel or the committee of creditors (CoC), citing legal challenges and property attachments as contributing factors. JSW Steel had invested heavily in modernizing BPSL, nearly doubling its production capacity from 2.3 million tonnes per annum in 2017 to 4.5 million tonnes per annum in 2025. The court observed that the purpose of the IBC—to transform a loss-making entity into a profit-making one—had been achieved.
The approval of JSW Steel’s resolution plan effectively concludes a six-year-long insolvency process that began in 2017 when Punjab National Bank initiated proceedings against BPSL. The plan had been approved by the CoC and the National Company Law Tribunal (NCLT) in 2019, and upheld by the National Company Law Appellate Tribunal (NCLAT) in 2020. However, dissenting creditors and former promoters challenged the plan in the Supreme Court, leading to the May 2025 ruling that quashed the plan and ordered liquidation. The court’s latest decision overturns that ruling, allowing JSW Steel to proceed with its acquisition of BPSL.
Following the Supreme Court’s approval, JSW Steel’s shares traded 1.23% lower at ₹1,134.40 apiece as of 12:55 p.m. on September 26.
The resolution plan had been a significant point of contention, with various stakeholders raising concerns over its terms and implementation. The court’s decision underscores the importance of adhering to the IBC’s framework and the finality of decisions made by the CoC and approved by the NCLT and NCLAT.
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