JSW Steel to decide next steps on Bhushan Steel after reviewing SC order

JSW Steel on Friday said it will review the Supreme Court order rejecting the company's resolution plan to take over Bhushan Steel and decide on future course of action.

Earlier in the day, the Supreme Court set aside the resolution plan submitted by JSW Steel for Bhushan Steel and Power Ltd (BSPL), holding it illegal and in violation of the Insolvency and Bankruptcy Code (IBC).

"We learnt that the Hon'ble Supreme Court pronounced Judgment today i.e 02-05-2025 rejecting the resolution plan submitted by the company and approved by NCLAT, on certain grounds. We are yet to receive the formal copy of the Order to understand the grounds for rejection in detail and its implications," the company said in a filing to the BSE.

"Once we receive the order and are able to review the same along with our legal advisors, we will decide on our further course of action," the company added.

The Supreme Court bench comprising Justice Bela M Trivedi and Justice Satish Chandra Sharma ordered the liquidation of BSPL under the IBC.

The top court criticised the conduct of all key stakeholders in the resolution process -- the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT) --? for enabling what it termed a "flagrant violation" of the IBC.

Justice Bela Trivedi, pronouncing the verdict, said the resolution professional failed to perform his statutory duties during the corporate insolvency resolution process, as mandated under the IBC and its associated regulations.

The bench said the CoC was found to have approved JSW's resolution plan without proper application of its commercial wisdom.

The plan contravened mandatory IBC provisions and did not protect creditors' interests and notably, the CoC accepted payments from JSW without objection, despite the plan's shortcomings, it added.

JSW Steel had won the bid to acquire Bhushan Power & Steel under the IBC for a little less than Rs 20,000 crore.

The tribunal had initiated corporate insolvency resolution process (CIRP) against BPSL on July 26, 2017, admitting the plea of its lead lender Punjab National Bank (PNB).