Big win for JSW Steel: Supreme Court upholds Bhushan Power takeover in rare reversal

The Supreme Court on Thursday reversed its own earlier ruling and upheld the resolution plan of JSW Steel Ltd for the acquisition of Bhushan Power and Steel Ltd (BPSL), rejecting objections raised by the ex-promoters and certain dissenting creditors of BPSL.

A special bench comprising Chief Justice B R Gavai and Justices Satish Chandra Sharma and K Vinod Chandran had reserved the verdict on a batch of petitions on August 11.

“We do not find any merit in the appeals. They are, therefore, dismissed,” the top court said and rejected the objections raised by the ex-promoters and certain creditors of BPSL.

The apex court’s fresh order clears the way for JSW Steel, one of India’s largest steelmakers, to retain control of BPSL, which it acquired in 2021 under the Insolvency and Bankruptcy Code (IBC), 2016. The insolvency law allows new owners to take over high-debt companies to ensure repayment to lenders.

On May 2, 2025, the Supreme Court declared the entire resolution plan “illegal,” triggering a nearly 6% drop in JSW Steel’s share price.

A bench of Justices Bela M Trivedi and Satish Chandra Sharma had set aside a resolution plan of applicant JSW Steel Limited for BPSL, holding it in violation of the IBC.

Five pleas were heard afresh after the CJI-led bench on July 31 recalled its May 2 verdict.