SC Approves JSW Steel's Takeover Of Bhushan Power And Steel

On September 26, the Supreme Court overturned its earlier May judgment and approved JSW Steel’s Rs 19,700-crore resolution plan for Bhushan Power & Steel (BPSL). The bench, led by Chief Justice of India BR Gavai, re-heard the appeal after recalling the previous ruling that had rejected JSW Steel’s proposal.

Lender Objections Rejected

The apex court dismissed the objections raised by BPSL’s ex-promoters and certain creditors. The lenders had sought Rs 3,569 crore from the company’s EBITDA and Rs 2,500 crore as delay-related interest. These claims were entirely rejected by the bench on September 26.
Impact on JSW Steel Shares

Following the Supreme Court’s decision, JSW Steel shares were trading 0.4 per cent higher at Rs 1140.35 down by 0.76 per cent. The ruling is expected to strengthen JSW Steel’s position in the steel sector while resolving one of the country’s largest insolvency cases.

Background of the Case

Earlier, on May 2, a bench headed by former top court judge Bela M Trivedi had ordered the liquidation of BPSL, setting aside JSW Steel Limited’s resolution plan. The latest verdict marks a significant reversal, allowing JSW Steel to acquire the ailing company and take control of its operations.

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JSW Steel-BPSL Saga: SC Flags Risk of Reopening Settled Issues

The Supreme Court has warned against reopening settled issues in the JSW Steel-Bhushan Power & Steel (BPSL) case, noting that entertaining claims from former promoters or the Committee of Creditors (CoC) over EBITDA distribution could have had “disastrous results.” 

It observed that neither the Request for Resolution Plan (RfRP) nor JSW’s approved plan addressed EBITDA, and allowing such belated claims would undermine the finality of the IBC framework. Citing its Essar Steel ruling, the court said a successful resolution applicant cannot be forced to deal with claims outside the approved plan, adding that creditors cannot now claim profits that were not part of the sanctioned resolution, and dismissing objections by former promoters and the CoC as lacking merit.