The Supreme Court has given approval to JSW Steel’s ₹19,700 crore resolution plan to take over Bhushan Power and Steel Limited (BPSL), which has been struggling with heavy debt for several years. The judgment, delivered on Friday by a special bench headed by Chief Justice B. R. Gavai along with Justices Satish Chandra Sharma and K. Vinod Chandran, marks a major step in one of the most high-profile insolvency cases in the country.
The court dismissed objections raised by the former promoters of BPSL and certain creditors, making it clear that their appeals had no merit. With this order, JSW Steel has finally received the legal backing needed to complete the long-delayed acquisition.
Bhushan Power and Steel Limited, once among the biggest steel producers in India, had slipped into deep financial trouble due to heavy borrowings. With unpaid loans running into thousands of crores, the company was dragged into insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The resolution process saw several bidders, but JSW Steel emerged as the successful applicant with an offer of ₹19,700 crore.
However, the road to approval was not simple. The matter had been tied up in legal disputes for years, as the ex-promoters and some creditors opposed the plan. They questioned both the role of the Committee of Creditors (CoC) and the manner in which the resolution process was conducted.
The special bench of the Supreme Court had earlier reserved its verdict on August 11, 2025, after hearing a batch of fresh petitions. This happened because on July 31, the court had recalled its earlier verdict of May 2, which had directed liquidation of BPSL and set aside JSW Steel’s plan. The earlier order had criticised the CoC, the resolution professional, and the National Company Law Tribunal (NCLT), saying their actions were in “flagrant violation” of the IBC.
At that stage, things looked bleak for the resolution plan, and liquidation of BPSL seemed likely. But with the recall of that verdict and a rehearing of the petitions, the matter was given a fresh chance.
In its latest ruling, the bench headed by the Chief Justice decided in favour of JSW Steel. The court rejected all objections put forward by ex-promoters and certain creditors. It held that their claims lacked merit and therefore could not block the resolution plan.
This verdict overrules an earlier judgment delivered by a bench of Justices Bela M. Trivedi and Satish Chandra Sharma, which had set aside JSW Steel’s plan by declaring it illegal and in violation of the IBC. That earlier decision had thrown the entire process into uncertainty. Now, with the new judgment, the Supreme Court has restored clarity and paved the way for JSW Steel’s takeover of BPSL.
The decision is being seen as a landmark in India’s insolvency framework. Experts believe it will strengthen investor confidence in the resolution process under the IBC and send a strong message that the highest court will step in to protect genuine resolution efforts from being derailed by prolonged disputes.
For JSW Steel, this approval is a major win. The company, one of India’s leading steel producers, will gain access to BPSL’s assets and production capacity. This will not only strengthen its market position but also help in meeting growing demand for steel in infrastructure and manufacturing sectors.
For the steel industry, the case is an important reminder of the challenges in resolving large corporate insolvency matters. Bhushan Power and Steel had been stuck in legal battles for years, delaying resolution and causing uncertainty among creditors and employees. The Supreme Court’s ruling shows that while the insolvency process can face obstacles, it can eventually deliver outcomes if pursued with determination.
Moreover, the judgment sends a signal to defaulting promoters that their attempts to derail resolution plans through endless litigation will not be entertained by the court if the process has followed the law.
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The Supreme Court’s approval of JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power and Steel brings to an end a long chapter of disputes, appeals, and setbacks. With this order, JSW Steel is now set to take control of BPSL’s operations and assets, giving a fresh lease of life to the debt-ridden company.
This case highlights the importance of a strong legal framework like the Insolvency and Bankruptcy Code in handling corporate debt issues in India. It also underlines the role of the Supreme Court in ensuring that resolution processes remain fair, transparent, and result-oriented.
For JSW Steel, it is a decisive step forward. For the steel industry and India’s corporate sector at large, it is a reaffirmation of faith in the country’s insolvency mechanism.
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