Supreme Court ends 8-year battle, clears JSW Steel’s ₹19,700-crore takeover of Bhushan Power & Steel

THEBUSINESSBYTES BUREAU
NEW DELHI, SEPTEMBER 26, 2025
Bringing finality to one of India’s longest-running insolvency battles, the Supreme Court on Friday upheld JSW Steel’s ₹19,700-crore resolution plan for debt-ridden Bhushan Power and Steel Ltd (BPSL). The landmark verdict ends an eight-year legal tussle and secures JSW’s ownership of the steelmaker, which was once among the Reserve Bank of India’s infamous “dirty dozen” corporate defaulters.
A bench led by Chief Justice B R Gavai, along with Justices Satish Chandra Sharma and K Vinod Chandran, dismissed appeals by former promoters and operational creditors, while upholding the February 2020 ruling of the National Company Law Appellate Tribunal (NCLAT). That ruling had cleared JSW Steel’s bid, granting it immunity from prosecution by the Enforcement Directorate.
“We do not find any merit in the appeals. The impugned judgment dated 17th February 2020 passed by the NCLAT is upheld,” CJI Gavai held, authoring a detailed 136-page verdict.
The case had seen several dramatic turns. Earlier this year, a Supreme Court bench led by Justice Bela M Trivedi had set aside JSW’s plan, citing “flagrant violations” of the Insolvency and Bankruptcy Code (IBC), and even ordered liquidation of BPSL. However, upon review, the CJI-led bench recalled that order, observing that it failed to consider earlier binding precedents.
One contentious issue was the treatment of ₹3,569 crore in earnings (EBITDA) generated during the resolution process. The Committee of Creditors argued that this amount, along with ₹2,500 crore as delay-related interest, should be paid to creditors. Rejecting the demand, the court noted that such provisions were not part of the request for resolution plans.
“The Corporate Debtor was running into substantial losses which has now become a profit-making entity earning substantial profits,” the bench said, crediting JSW for investing heavily in modernisation and expansion. It added that thousands of jobs were saved, fulfilling the very objective of the IBC — to preserve viable businesses as going concerns.
With admitted claims exceeding ₹47,000 crore from financial creditors and over ₹600 crore from operational creditors, the BPSL case ranks among India’s largest insolvency proceedings. JSW Steel, which emerged as the highest bidder in 2018, now officially completes its long-pending acquisition.
The verdict not only settles one of the most complex insolvency disputes but also reinforces judicial support for resolution plans that prioritise revival of distressed assets over liquidation.