Supreme Court upholds JSW’s takeover of Bhushan Power
The Supreme Court has dismissed appeals challenging JSW Steel’s 19,700 crore resolution plan for Bhushan Power and Steel Limited (BPSL) (Kalyani Transco v. Bhushan Power & Steel Limited). It is noted that JSW has invested huge amounts in making BPSL a profit-making company and cannot be penalised for doing so. The matter arises from the Court’s May 2, 2025 judgment which struck down JSW Steel’s plan and ordered BPSL’s liquidation under Article 142 of the Constitution. That ruling had held that the CoC erred in approving the plan.
JSW Steel, chosen as the successful resolution applicant in 2019, offered over 19,000 crore to creditors. The plan was approved by the National Company Law Tribunal (NCLT) in September 2019 and upheld by the National Company Law Appellate Tribunal (NCLAT). The Enforcement Directorate (ED) challenged the plan citing alleged money laundering by BPSL’s former promoters.
On July 31, the Supreme Court recalled its May 2 judgment, noting that it may have misapplied settled Insolvency and Bankruptcy Code (IBC) principles and relied on inaccurate or unargued points. It thus decided to rehear the matter.
During the hearings, the CoC claimed that JSW must pay Bhushan Power the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) as it had not taken over the company as planned. The erstwhile promoter of BPSL told the Court that liquidation of the company was not the objective, and that a fresh corporate insolvency resolution process (CIRP) should be initiated if JSW's resolution plan is found to be flawed. The promoters had also argued that the CoC could not have extended the time for implementing the resolution plan as it had become functus officio after the approval of the plan by NCLT.
