JSW Steel gets relief from SC as top court orders status quo on liquidation of Bhushan Power & Steel

The top court's directive comes as JSW Steel seeks a review of the Supreme Court's May 2, 2025, ruling, which had rejected its ₹19,700-crore resolution plan for BPSL, citing "procedural

lapses" and "violations" of the Insolvency and Bankruptcy Code (IBC).

The earlier Supreme Court ruling had declared the plan illegal due to issues such as JSW’s use of equity and optionally convertible debentures instead of equity alone, delays in

implementation, and failure to comply with Section 29A of the IBC, ordering liquidation proceedings to commence.

JSW contended that starting the liquidation process would be “fatal” for the company and would negatively impact various stakeholders, such as creditors and employees.

A panel of Justices B V Nagarathna and Satish Chandra Sharma stated that liquidating BPSL could undermine the review petition that JSW Steel intended to file. "Without expressing any opinion

at this stage, we are of the view that it would be in the interest of justice if status quo is maintained on the proceedings pending in NCLT," the bench said.

Earlier this month, India’s largest steelmaker JSW Steel said it is "still trying to comprehend" the reasons behind the Supreme Court's rejection of its resolution plan for the bankrupt

Bhushan Power & Steel after the apex court ordered the liquidation of BPSL, declaring the company's ₹19,700-crore resolution offer “unlawful” and in violation of the Insolvency and

Bankruptcy Code (IBC).

JSW Steel had proposed to pay ₹19,350 crore to the financial creditors of Bhushan Steel. This translated into around a 60% haircut on the original debt worth ₹47,000 crore. The company had

also proposed to pay around ₹350 crore to operational creditors against their claims worth ₹733 crore.

JSW approached the Supreme Court after BPSL's former promoter, Sanjay Singhal, requested the NCLT to initiate liquidation proceedings and appoint a liquidator.

Bhushan Power and Steel, one of the 12 major non-performing assets (NPAs) flagged by the Reserve Bank of India, was referred for resolution under the IBC in 2017.

JSW Steel reported a consolidated net profit of ₹3,491 crore for FY25, with revenue from operations standing at ₹1,68,824 crore. In the January–March quarter, JSW Steel’s revenue stood at

₹44,819 crore, while net profit came in at ₹1,501 crore. JSW Steel's capacity utilisation for India operations reached 93% in the fourth quarter, driven by ramp-ups at the JSW Vijayanagar

Metallics Ltd and Bhushan Power & Steel.