Supreme Court Upholds JSW Steel's Rs 19,700 Cr Bhushan Power & Steel Resolution Plan

(MENAFN- KNN India) New Delhi, Sep 26 (KNN) The Supreme Court on Friday dismissed appeals challenging JSW Steel Ltd.'s Rs 19,700 crore resolution plan for Bhushan Power and Steel Ltd (BPSL) in Kalyani Transco v. Bhushan Power & Steel Limited.

A Bench comprising Chief Justice, India, BR Gavai and Justices Satish Chandra Sharma and Vinod Chandran observed that delays in implementation were not attributable to the Committee of Creditors (CoC) or the successful resolution applicant (SRA).

“Commercial wisdom cannot be interfered with...Once the resolution plan is approved by the CoC, permitting any claims to be reopened will amount to committing violence on provisions of law,” the Bench said.

The Court also noted that JSW Steel's significant investments in turning BPSL into a profitable company cannot be penalised.

The matter arises from the Supreme Court's May 2, 2025, judgment, which had struck down JSW Steel's plan and ordered BPSL's liquidation under Article 142 of the Constitution.

That ruling, delivered by Justices Bela M Trivedi and Satish Chandra Sharma, had held that the CoC erred in approving the plan.

On July 31, the Supreme Court recalled the May 2 judgment, noting possible misapplication of settled Insolvency and Bankruptcy Code (IBC) principles, and decided to rehear the matter.

JSW Steel, selected as the successful resolution applicant in 2019, had offered over Rs 19,000 crore to creditors.

The plan was earlier approved by the National Company Law Tribunal (NCLT) and was upheld by the National Company Law Appellate Tribunal (NCLAT).

Implementation faced delays due to Enforcement Directorate (ED) asset attachments, though JSW Steel maintained that it had fulfilled its obligations while managing a loss-making company.

During hearings, representing the Coc, Solicitor General Tushar Mehta, argued that JSW should pay Bhushan Power the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

Former promoters contended that liquidation was not the objective and that, if necessary, a fresh corporate insolvency resolution process (CIRP) should be initiated.

Senior Advocate Neeraj Kishan Kaul and Dhruv Mehta represented JSW Steel and the erstwhile promoters, respectively.

Since taking over, JSW Steel has substantially increased BPSL's production capacity and operational efficiency, reinforcing the company's position in India's steel sector while ensuring compliance with the IBC framework.

(KNN Bureau)

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