Steel Giant’s Victory: Supreme Court Backs JSW’s Bhushan Power Takeover

Updated: September 27, 2025 13:40

Image Source: LawChakra

In a landmark verdict, the Supreme Court has upheld JSW Steel Ltd’s ₹9,700 crore resolution plan to acquire Bhushan Power and Steel Ltd (BPSL), reversing its May 2025 order which had directed liquidation of the bankrupt company. The ruling reinstates the National Company Law Appellate Tribunal’s (NCLAT) 2020 approval of JSW’s takeover, recognizing the revival plan’s compliance with the Insolvency and Bankruptcy Code (IBC). This decision sets a crucial precedent for insolvency proceedings in India.

Background and Legal Battle

JSW Steel acquired Bhushan Power in March 2021 under the IBC via a Corporate Insolvency Resolution Process (CIRP)
Initial Supreme Court orders in May 2025 invalidated the takeover resolution plan, directing liquidation citing procedural concerns
The recent ruling by a bench led by Chief Justice BR Gavai overturns the earlier judgment, restoring JSW’s acquisition

Judicial Observations

The court recognized the Committee of Creditors’ commercial wisdom in approving JSW’s plan
It dismissed allegations of delay or misrepresentation by JSW, attributing revival hurdles to external enforcement proceedings
Emphasized the IBC’s purpose as revival-oriented with liquidation as a last resort

Impact on Bhushan Power and Steel

JSW’s investment has turned around BPSL, transforming it from a loss-making to a profit-generating entity
Thousands of jobs preserved and production capacity boosted in eastern India
The verdict strengthens confidence in the corporate insolvency regime

Future Significance

The verdict underscores the sanctity of approved resolution plans in insolvency cases
It signals judicial support for revival efforts and cautions against interfering with creditor-approved resolutions
Provides clarity and stability for stakeholders and investors in distressed asset resolutions

Relevant Sources: Indian Express, Times of India, India Today, Economic Times, Business Standard

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