Supreme Court to deliver verdict on JSW Steel’s ₹19,700 cr BPSL resolution plan on Friday
The outcome will determine if JSW Steel retains control of the company or if lenders face losing nearly ₹34,000 crore, carrying significant implications for India's Insolvency and Bankruptcy Code
In what could be the final word on one of India’s longest-running insolvency battles, the Supreme Court will on Friday pronounce its verdict on JSW Steel Ltd’s ₹19,700 crore resolution plan for bankrupt Bhushan Power and Steel Ltd (BPSL).
According to the top court’s cause list, a special bench led by Justice B.R. Gavai, along with Justices Satish Chandra Sharma and K. Vinod Chandran, will deliver the ruling.
The bench had reserved its order on 11 August after rehearing JSW Steel’s review plea.
Significance for IBC
The outcome will determine whether JSW Steel retains control of BPSL or if the company is pushed into liquidation—a move that could have wide implications for the Insolvency and Bankruptcy Code (IBC) framework.
The review plea arose after the Supreme Court’s 2 May ruling quashed JSW Steel’s resolution plan and ordered the liquidation of BPSL.
That order made banks return ₹19,350 crore already paid by JSW Steel and put nearly ₹34,000 crore of bank debt at risk.
Delivered under Article 142 of the Constitution, the ruling was recalled on 31 July. The court cited misapplication of IBC principles, reliance on factual inaccuracies, and consideration of arguments not raised during earlier hearings.
The recall paved the way for a fresh hearing, with Friday’s judgment now viewed as JSW Steel’s last chance to retain BPSL.
BPSL was among 12 large defaulters identified by the Reserve Bank of India in 2017 after defaulting on more than ₹47,000 crore in loans.
JSW Steel emerged as the highest bidder in 2018 with its ₹19,700 crore offer, edging out Tata Steel.
The plan was cleared by lenders, approved by the National Company Law Tribunal (NCLT) in 2019, and upheld by the National Company Law Appellate Tribunal (NCLAT) in 2020, but its implementation was repeatedly delayed by litigation until JSW finally took charge in March 2021.
Since then, JSW Steel claims it has nearly doubled BPSL’s production capacity from 2.3 million tonnes per annum in 2017 to 4.5 mtpa in 2025.
The Supreme Court’s verdict will now decide whether JSW Steel retains the bankrupt company, whether BPSL is sent into liquidation, or if a fresh round of bidding is ordered.