SC ruling on BPSL resolution may reset IBC process as JSW plans review plea

"No prudent resolution applicant would submit a plan if there remains a lingering fear that some state authority might overturn it decades later", says Former IBBI chairperson M S Sahoo

Flash back to March 26, 2021. JSW Steel had just completed its largest acquisition—Bhushan Power and Steel (BPSL)— under the Insolvency and Bankruptcy Code (IBC). “This acquisition not only aligns with our core business and purpose but also establishes our presence and acceler­ates our growth vision in eastern India,” Sajjan Jindal, chairman of JSW Steel, had written to BPSL employees after paying financial creditors ₹19,350 crore.

 

Four years later, on May 2, 2025, that vision took a severe blow when the Supreme Court rejected JSW Steel’s resolution plan for BPSL and ordered its liquidation.

 

The big jolt

 

The apex court