On 2 May 2025, the Supreme Court delivered a far-reaching Judgement in the matter of Kalyani Transco v Bhushan Power and Steel Ltd. The Court was hearing appeals by a bunch of operational creditors who had challenged the Corporate Insolvency and Resolution Process (CIRP) of Bhushan Power and Steel Limited (BPSL). In 2019, the National Company Law Tribunal (NCLT) had approved JSW Steel’s acquisition of BPSL as part of the proceedings under the Insolvency and Bankruptcy Code (IBC), for ₹19,700 crore. The acquisition was formally completed in March 2021.
By directing the liquidation of BPSL, the Court reversed one of the most elaborate resolution processes in India’s insolvency history. The Judgement has caused quite a stir in…