JSW Steel shares likely to rise today; July 31 is crucial for the company; all you need to know

The Supreme Court on Tuesday fixed July 31 for hearing pleas seeking a review of a May 2 verdict that set aside a resolution plan submitted by JSW Steel Limited for Bhushan Steel and Power Limited (BSPL), holding it illegal and in violation of the Insolvency and Bankruptcy Code (IBC).

A bench of Chief Justice B. R. Gavai and Justice Satish Chandra Sharma allowed an application for an open-court hearing and fixed July 31 for hearing a batch of pleas seeking a review of the verdict.

"Application(s) for listing review petition(s) in open court and application for oral hearing are allowed. Issue notice. List these matters on July 31, 2025, at 3 pm," the bench ordered.

The court considered the review pleas in chambers by circulation and passed the order.

The former promoters of BSPL urged the top court on July 21 to accord an open-court hearing to their plea for a review of the May 2 verdict.

The former promoters of BSPL were Sanjay Singhal and his family, specifically including his father, Brij Bhushan Singhal, and brother, Neeraj Singhal.

What happened on May 2 and May 26, 2025?

The apex court ordered the liquidation of BSPL under the IBC on May 2, as it criticised the conduct of all key stakeholders in the resolution process -- the resolution professional, the CoC, and the NCLT—for enabling what it termed a "flagrant violation" of the IBC.

The top court criticised multiple stakeholders, including successful resolution applicant (SRA) JSW Steel Limited, for procedural lapses and a failure to uphold the objectives of the IBC.

"Having thoroughly examined the entire matter factually and legally, we arrive at the following irresistible conclusions: the resolution professional had utterly failed to discharge his statutory duties contemplated under the IBC and the CIRP regulations during the course of the entire CIR proceedings of the corporate debtor, BPSL," the verdict had said.

The top court had held that the CoC had failed to exercise its commercial wisdom while approving JSW's resolution plan, which was in absolute contravention of the mandatory provisions of the IBC and CIRP regulations.

On May 26, the Supreme Court ordered the status quo on the liquidation proceedings of Bhushan Steel and Power Ltd (BPSL) before the National Company Law Tribunal.

A bench of Justices B. V. Nagarathna and Satish Chandra Sharma said liquidation of the BPSL might jeopardise the review petition, which was to be filed by JSW Steel Ltd.

The top court passed the order after hearing a plea filed by JSW Steel Ltd seeking to keep liquidation of BPSL in abeyance.

According to a report by MoneyLife, which was published on March 5, 2021, SBI, the largest lender to Bhushan Power, by accepting the resolution plan, stands to recover over ₹4,000 crore. PNB would recover ₹4,399 crore, while Canara Bank can get ₹2,244 crore from the plan. With this resolution plan, all creditors of Bhushan Steel would gain 41% (₹19,500 crore) as against their claims of ₹48,000 crore.

"As per the resolution plan, the Sajjan Jindal-led JSW Steel would deposit ₹19,350 crore within two weeks in an escrow account," the report had said.