The Supreme Court on May 2 struck down JSW Steel’s ₹19,700-crore resolution plan for Bhushan Power and Steel Ltd (BPSL), ordering the debt-laden company to be liquidated instead.
The ruling cited two key reasons for its decision: JSW’s use of a mix of equity and optionally convertible debentures (OCDs) to complete the takeover—when it should have been executed solely through equity—and a failure to implement the plan within the timeframe mandated under insolvency law.
The apex court declared the plan—approved earlier by Bhushan Power’s Committee of Creditors (CoC)—as illegal, stating it should not have been accepted in the first place.
JSW Steel had emerged as the successful resolution applicant for BPSL in one of…
