The Supreme Court has delivered a significant verdict, affirming JSW Steel’s impressive ₹19,700-crore resolution plan for Bhushan Power and Steel Limited (BPSL), a company mired in debt. This landmark decision brings a definitive conclusion to a long-standing corporate insolvency battle.
A special bench, led by Chief Justice B.R. Gavai and including Justices Satish Chandra Sharma and K. Vinod Chandran, had previously reserved its judgment on a series of petitions related to the case.
In their ruling, the apex court unequivocally stated, “We do not find any merit in the appeals. They are, therefore, dismissed.” This statement effectively struck down all objections raised by former promoters and several creditors of BPSL, paving the way for JSW Steel’s acquisition.
This recent hearing followed the Chief Justice’s earlier bench decision on July 31, which had recalled a May 2 verdict. The initial May 2 ruling had controversially ordered the liquidation of BPSL and rejected JSW’s resolution plan, citing a “flagrant violation” of the Insolvency and Bankruptcy Code (IBC) by the Committee of Creditors (CoC), the resolution professional, and the National Company Law Tribunal.
Prior to that, a different bench, composed of Justices Bela M. Trivedi and Satish Chandra Sharma, had initially invalidated JSW Steel’s resolution plan for BPSL, deeming it unlawful and contrary to the principles of the IBC. The current ruling effectively overturns these previous objections and clears the path forward.