BS EDIT: SC Liquidates BPSL: What It Means for IBC

By Business StandardPublished On May 5, 2025

The Ruling

The Supreme Court declared JSW Steel’s resolution plan for BPSL illegal and ordered liquidation — four years after approval

Who's at Fault?

The court flagged failures across

Resolution Professional

Committee of Creditors

NCLT for clearing a flawed plan

Hit to Lenders

Banks recovered ₹19,350 crore

Now, they may need to return it — and provision for losses, denting profits

Liquidation ≠ Resolution

IBC aims to revive firms, not liquidate them

This order destroys value and may hurt business sentiment

A Missed Alternative

Could the court have ordered a rebid instead of liquidation — with penalties on those at fault?

What Next?

The case highlights gaps in the IBC process

The Centre must act to restore trust in India’s bankruptcy framework