Bhushan Steel and Power: SC rejects the JSW Steel Decision Plan, applications

On May 2, the Supreme Court rejected the decision plan submitted by JSW Steel to Bhushan Steel and Power Ltd (BSPL) on May 2 and ordered BSPL liquidation under IBC.

He criticized a seat that includes Judge Bella Trevidy, Justice Satish Chandra Sharma, the behavior of all the main stakeholders in the decision -making process – the decision -making professional, COC Committee, and the NCLT Court of Law – to enable what is called a “great violation” at the National Party Institute.

Judge Bella Trevidy, who announced the ruling, said that the decision specialist failed to perform his legal duties during the process of solving the company’s insolvency, as shown under IBC and its associated regulations. The seat said that COC had approved the JSW decision plan without applying suitable for its commercial wisdom.

She added that the plan contradicts the mandatory IBC rulings and did not protect the interests of creditors, especially since the accepted payments of JSW without objection, despite the shortcomings of the plan.

The referee announced the orders of September 5, 2019, from NCLT and the rule of NCLAT on February 17, 2022 as a “deviant” and lacks the jurisdiction, and thus put them aside.

The seat rejected the JSW accuracy plan, as COC approved, as it is not compatible with IBC. NCLT was later directed to start filtering procedures against BSPL under Article 33 (1) of IBC, and to exercise court powers under Article 142 of the Constitution.

“We have learned that the esteemed Supreme Court stated the ruling today, i.e. 02-05-2025, rejecting the decision-making plan submitted by the company and approval by NCLAT, on a specific basis. We will not yet be able to obtain the official version of our legal order, we will report the exchange.

JSW Steel obtained a 49 percent stake in BPSL through the course of insolvency and bankruptcy law (IBC) in 2021, and the acquisition trip began. The acquisition has added 2.75 million tons annually (MTPA) of the capacity of the steel industry to the JSW portfolio in Odisha. Later that year, JSW raised its share to 83.3 % as of October 1, 2021.

Although JSW Steel has been announced the successful applicant for the decision, the deal was intertwined in legal obstacles from the beginning. Especially after the Directorate of Enforcement in 2020, it was appointed BPSL, its former president and administrative director in the case of the Bank of Bank 47,204 rupees.

Earlier this year, the Delhi Supreme Court canceled the procedures for laundering against BPS, as it provided some relief to the company.

(With PTI inputs)