India's Apex Court To Hear JSW Steel's Plea On BPSL Liquidation - Details

JSW Steel SC Plea: After having noted JSW Steel's resolution plan pertaining Bhushan Power and Steel Ltd (BPSL) to be in "flagrant violation" of the Insolvency and Bankruptcy Code (IBC), the Supreme Court will hear a plea filed by the steel major seeking a review of the apex court's judgement dated May 2, 2025. 

The review petition names former BPSL promoter Sanjay Singhal, whose earlier plea led to the Supreme Court's ruling invalidating the resolution plan.

The matter is listed for 26 May before a bench consisting Justices B.V. Nagarathna and Satish Chandra Sharma. Justice Nagarathna replaces Justice Bela M. Trivedi, who was part of the original bench with Justice Sharma but has since retired.

Reportedly, the steel manufacturing player has requested to defer BPSL's liquidation procedure by 60 days. The firm has also sent demand notices to banks, seeking refunds of payments made under the now-quashed resolution plan.

Another plea filed Sanjay Singhal, notoriously well-known for grabbing the attention of investigate agencies, will be heard by the National Company Law Tribunal (NCLT) in an effort to seek enforcement of the Supreme Court’s liquidation order.

Singhal has urged the tribunal to initiate immediate liquidation to safeguard BPSL’s assets and prevent potential misuse or diversion.

The latest plea before the Supreme Court is significant for JSW Steel, which acquired BPSL through the insolvency resolution process over five years ago and has since invested heavily in reviving and operating the company. The apex court’s decision has disrupted JSW’s long-term plans to scale up capacity to 50 million tonnes by 2030.

As of 31 March las fiscal year, JSW Steel carried net assets worth Rs 14,091 crore related to BPSL on its consolidated balance sheet. The BPSL plant in Odisha boasting a capacity of 4.5 million tonnes per annum (MTPA) plays a key part of JSW Steel’s domestic day-to-day operations, which total 34.2 MTPA, the highest in this south Asian nation.