JSW Steel Mulls Legal Options After Supreme Court Rejects BPSL Resolution Plan

JSW Steel is considering all legal avenues after the Supreme Court invalidated its resolution plan for Bhushan Power and Steel Ltd (BPSL), raising serious questions about the conduct of the insolvency process.

The steel major, in a statement, asserted that it had implemented the resolution plan for BPSL “in full compliance” with the rules laid out under the Insolvency and Bankruptcy Code (IBC). The company is now exploring possible legal remedies, including a review petition in the apex court.

On May 2, the Supreme Court delivered a scathing verdict rejecting the resolution plan submitted by JSW Steel, declaring it unlawful and in direct violation of the IBC. The bench, comprising Justice Bela M Trivedi and Justice Satish Chandra Sharma, ordered the liquidation of BPSL and sharply criticised the actions of all major stakeholders involved in the resolution process.

The court held the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT) accountable for enabling what it described as a “flagrant violation” of the IBC.

The ruling marks a major setback for JSW Steel, which had acquired BPSL in 2019 in a ₹19,700-crore deal following a prolonged bankruptcy resolution. The judgment may also have wider implications for India’s insolvency framework, especially in high-value cases involving large corporate debtors.

Legal experts note that JSW Steel’s next course of action—whether a review petition or an alternative legal strategy—could set important precedents for future insolvency resolutions under the IBC.

JSW Steel has yet to disclose a definitive legal path, but said it remains committed to protecting its interests while upholding the integrity of the insolvency process.