The Supreme Court has finally settled the long-running dispute over the fate of Bhushan Power and Steel Ltd (BPSL), approving JSW Steel’s ₹19,700-crore resolution plan and allowing the company to move ahead with its takeover. The ruling came from a bench headed by Chief Justice of India BR Gavai, who emphasized that JSW Steel had satisfied all the requirements of a successful resolution applicant under the Insolvency and Bankruptcy Code (IBC).
CJI Gavai pointed out that reversing the decisions of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), both of which had upheld the plan, would have resulted in chaos and uncertainty. He observed that overturning consistent rulings from the lower adjudicating bodies would set a damaging precedent and disrupt the overall resolution framework.
This marks a major reversal of an earlier Supreme Court ruling delivered by a two-judge bench, which had directed the liquidation of BPSL instead of allowing its acquisition. That earlier verdict had raised concerns over JSW Steel’s eligibility to carry out the takeover, creating legal uncertainty around the case. With the CJI-led bench now setting aside that decision, the matter has been put to rest, clearing the way for one of the largest resolutions under the IBC.
The verdict is significant not only for JSW Steel but also for the broader insolvency ecosystem in India, as it reinforces the authority of the IBC process and signals judicial support for corporate resolutions over liquidation. The acquisition will enable JSW Steel to strengthen its foothold in eastern India and significantly enhance its overall production capacity. Industry experts see this as a landmark ruling that restores confidence in the IBC framework while also unlocking value from distressed assets through timely resolutions.
The conclusion of this prolonged legal battle ensures that BPSL will not be consigned to liquidation but instead integrated into JSW Steel’s operations, potentially stabilizing jobs, protecting investments, and contributing to the growth of India’s steel sector.
