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Supreme Court scraps JSW Steel’s ₹19,700 crore plan.
Orders liquidation of Bhushan Power and Steel.
Legal delays cited in final decision.
In a decisive verdict affecting India’s insolvency proceedings, the Supreme Court of India has rejected JSW Steel’s resolution plan for Bhushan Power and Steel Ltd (BPSL) and ordered the liquidation of the debt-ridden company.
The court cited persistent legal hurdles and regulatory delays as reasons for its decision, noting that the prolonged four-year delay in resolution was against the spirit of the Insolvency and Bankruptcy Code (IBC), which mandates timely settlement of insolvency cases. JSW Steel’s ₹19,700 crore bid had been stuck in litigation over pending investigations and asset attachment issues by enforcement agencies.
Bhushan Power and Steel, once a significant secondary steel producer, had defaulted on debts exceeding ₹47,000 crore in 2017. With this ruling, one of the largest unresolved insolvency cases in the steel sector will now move towards asset liquidation.
Industry experts believe this decision sets a precedent for strict adherence to IBC timelines and underlines the importance of regulatory clarity in major asset resolutions. For lenders, including Punjab National Bank, State Bank of India, and others, the liquidation is expected to result in lower recoveries than a structured resolution.
Also Read : UK Moves to Save Steel Industry with Emergency Law, Takes Over Chinese-Owned Plant Supreme Court to Hear JSW Steel’s Review Petition on Bhushan Power Liquidation
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