Supreme Court to Rehear Bhushan Power Liquidation Case After Pleas from JSW and Lenders 

 
Chief Justice of India B.R. Gavai has announced the formation of a special Supreme Court bench to hear review petitions filed by JSW Steel and lenders of Bhushan Power & Steel Ltd. (BPSL). The petitions challenge the court’s May 2 judgment directing BPSL's liquidation under the Insolvency and Bankruptcy Code (IBC). 

JSW Steel, which acquired BPSL in March 2021 for ₹19,350 crore through an approved resolution plan, argues that the company has been successfully revived. Since the takeover, BPSL’s production has risen from 2.3 million tonnes per annum to 4.5 MTPA, with annual revenue touching ₹26,000 crore. JSW claims to have invested over ₹5,700 crore, while the revived entity has contributed nearly ₹17,000 crore to government taxes. Lenders, including Punjab National Bank and State Bank of India, also back the petition, citing significant recovery and asset improvement. 

The petitioners contend that liquidation would undo the progress made, hurt stakeholders, and go against the intent of the IBC. In parallel, former promoters of BPSL, including Sanjay Singhal and his family, have also moved the court seeking an open-court review. They claim the liquidation undervalues the company and could impose residual liabilities on them unfairly. 

Justice Gavai noted that the newly formed bench will first decide whether to appoint an administrator before hearing all review petitions. The case is poised to become a defining moment for India's insolvency framework.