The Supreme Court has upheld JSW Steel Limited’s ₹19,700 crore resolution plan for debt-ridden Bhushan Power & Steel Limited (BPSL).
The bench dismissed objections raised by former promoters and certain creditors of BPSL and overturned its earlier order that had rejected the plan.
The Court observed that JSW Steel fulfilled all the requirements of a successful resolution applicant under the Insolvency and Bankruptcy Code (IBC).
It noted that JSW revived the plant through heavy investment and provided employment to thousands of people. The bench warned that reversing the concurrent approvals granted by the Committee of Creditors (CoC), the National Company Law Tribunal (NCLT), and the National Company Law Appellate Tribunal (NCLAT) would have disastrous consequences.
Chief Justice of India BR Gavai, Justice Satish Chandra Sharma, and Justice Vinod Chandran reserved the verdict after hearing arguments from all parties.
Solicitor General Tushar Mehta represented the CoC, senior advocate Neeraj Kishan Kaul appeared for JSW Steel, while senior advocate Dhruv Mehta argued on behalf of the former promoters.
CJI Emphasises Employees’ Interests
CJI BR Gavai underscored that the Court could not use its powers under Article 142. He said doing so would harm 25,000 employees of a revived company.
He clarified that the Court would examine only the legal validity of the previous judgment and would not consider any new documents. The Chief Justice stressed the need for decisions that remain within the legal framework and protect workers’ interests.
In December 2024, Justices Bela Trivedi and Satish Chandra Sharma struck down JSW’s plan, citing errors by the CoC. JSW Steel later filed a review petition, after which the Supreme Court, on May 2, set aside its earlier decision.
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