On May 2, 2025, the Supreme Court ordered liquidation of Bhushan Power & Steel Ltd (BPSL) and scrapped JSW Steel’s Rs. 19,350-crore resolution plan four years after takeover sending shockwaves through India’s insolvency market. That verdict has now been recalled; the Court has re-heard the matter in open court and on reserved its judgment.
Background
BPSL, one of RBI’s original “dirty dozen,” entered Corporate Insolvency Resolution Process (CIRP) in 2017 with dues exceeding Rs. 47,000 crore. JSW’s plan cleared the Committee of Creditors (CoC) in 2018, got National Company Law Tribunal (NCLT) approval in 2019, and was substantially implemented by March 2021, including an upfront payment of Rs.19,350 crore.
On May 2, 2025, in…