Supreme Court Restores JSW Steel’s ₹19,000-Crore Takeover of Bhushan Power & Steel

The Supreme Court on Friday reversed its earlier ruling and cleared JSW Steel’s ₹19,000-crore acquisition of Bhushan Power & Steel Ltd (BPSL), delivering clarity on the finality of insolvency resolutions under the Insolvency and Bankruptcy Code (IBC).

A three-judge bench headed by Chief Justice B. R. Gavai, with Justices S. C. Sharma and K. Vinod Chandran, upheld the National Company Law Appellate Tribunal’s 2020 approval of JSW’s resolution plan. This comes months after another bench of the apex court, in May 2025, had cancelled the acquisition and ordered liquidation, citing non-compliance with IBC provisions. That order was recalled in July following review petitions, paving the way for a fresh hearing.

In its judgment, the bench noted that under JSW’s management, BPSL had turned around from losses to profitability, a development that benefited creditors, employees, and the wider economy. “Should JSW be penalised for reviving a failing enterprise?” the court asked, stressing that unsettling long-concluded resolution plans would undermine investor confidence and defeat the objectives of the IBC.

The court dismissed objections raised by former promoters and sections of the Committee of Creditors who opposed the deal. It observed that accepting their arguments would set a dangerous precedent, opening the floodgates to endless litigation and destabilising successful resolutions already implemented under the IBC framework.

With this ruling, liquidation proceedings against BPSL have been halted, and JSW’s ownership stands affirmed. The verdict also reinforces the principle that the IBC is designed to preserve distressed companies as “going concerns,” not to dismantle them.