The Supreme Court on Friday reinstated JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power & Steel Ltd (BPSL), reversing its earlier May verdict that had ordered liquidation. The court upheld the decisions of the Committee of Creditors (CoC), reaffirming that resolution plans, once approved and substantially implemented, cannot be undone due to delays caused by external legal hurdles like Enforcement Directorate (ED) asset attachments. The bench emphasized that CoC’s authority continues until full implementation or liquidation and that resolution applicants cannot be penalized for delays beyond their control. It ruled that JSW’s issuance of compulsorily convertible debentures worth ₹8,450 crore met its equity obligations and rejected claims for a share in BPSL’s profits during litigation. The court also dismissed former promoters’ and lenders’ challenges, stressing that claims not part of the approved plan or RfRP cannot be entertained later. This landmark verdict restores certainty to India’s Insolvency and Bankruptcy Code (IBC), protects earlier recoveries, and confirms the finality of judicially approved resolution plans. For JSW, it secures a vital asset in its expansion strategy, and for the broader insolvency ecosystem, it reinforces resolution as the preferred approach over liquidation.
SC Restores JSW Steel’s Resolution Plan For BPSL
