+
 Supreme Court Clears JSW Steel’s Rs 197 Billion BPSL Plan
Steel

Supreme Court Clears JSW Steel’s Rs 197 Billion BPSL Plan

 The Supreme Court on 26 September overturned its own earlier ruling and approved JSW Steel’s Rs 197 billion resolution plan for Bhushan Power & Steel Ltd (BPSL), dismissing objections raised by the company’s former promoters and certain creditors.
A bench led by Chief Justice of India BR Gavai re-heard the case after recalling its May judgment that had rejected the plan. The court also dismissed pleas by Bhushan Power’s lenders seeking a share in the company’s EBITDA and claims of Rs 35.7 billion in earnings and Rs 25 billion in delay-related interest.
The bench, also comprising Justices Satish Chandra Sharma and K Vinod Chandran, ruled that a successful resolution applicant (SRA) cannot be forced to honour claims outside the request for resolution plan (RfRP) under Section 25 of the Insolvency and Bankruptcy Code (IBC).
The court observed that JSW Steel had revived BPSL through heavy investment in modernisation and by preserving thousands of jobs, achieving the IBC’s purpose of transforming a loss-making entity into a profitable one.
On 2 May, a bench led by Justice Bela M Trivedi had ordered liquidation of BPSL while rejecting JSW Steel’s plan. However, on 31 July, the CJI-led bench recalled that verdict, criticising the conduct of the committee of creditors, the resolution professional and the National Company Law Tribunal (NCLT) for what it termed serious breaches of the IBC process.
The resolution had faced significant delays, with payments to financial creditors overdue by 540 days and to operational creditors by over 900 days. Insolvency proceedings against BPSL began in 2017 on a petition by Punjab National Bank, with JSW Steel’s plan first approved by the NCLT in 2019.
At 11 am on 26 September, JSW Steel’s shares traded 0.4 per cent higher at Rs 1,154 apiece.

 The Supreme Court on 26 September overturned its own earlier ruling and approved JSW Steel’s Rs 197 billion resolution plan for Bhushan Power & Steel Ltd (BPSL), dismissing objections raised by the company’s former promoters and certain creditors.A bench led by Chief Justice of India BR Gavai re-heard the case after recalling its May judgment that had rejected the plan. The court also dismissed pleas by Bhushan Power’s lenders seeking a share in the company’s EBITDA and claims of Rs 35.7 billion in earnings and Rs 25 billion in delay-related interest.The bench, also comprising Justices Satish Chandra Sharma and K Vinod Chandran, ruled that a successful resolution applicant (SRA) cannot be forced to honour claims outside the request for resolution plan (RfRP) under Section 25 of the Insolvency and Bankruptcy Code (IBC).The court observed that JSW Steel had revived BPSL through heavy investment in modernisation and by preserving thousands of jobs, achieving the IBC’s purpose of transforming a loss-making entity into a profitable one.On 2 May, a bench led by Justice Bela M Trivedi had ordered liquidation of BPSL while rejecting JSW Steel’s plan. However, on 31 July, the CJI-led bench recalled that verdict, criticising the conduct of the committee of creditors, the resolution professional and the National Company Law Tribunal (NCLT) for what it termed serious breaches of the IBC process.The resolution had faced significant delays, with payments to financial creditors overdue by 540 days and to operational creditors by over 900 days. Insolvency proceedings against BPSL began in 2017 on a petition by Punjab National Bank, with JSW Steel’s plan first approved by the NCLT in 2019.At 11 am on 26 September, JSW Steel’s shares traded 0.4 per cent higher at Rs 1,154 apiece. 

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Jayadev Vihar–Nandankanan Road Choked as Soil Testing Begins

Traffic congestion along the Jayadev Vihar–Nandankanan corridor, one of the busiest stretches in the capital, has reached a breaking point. Thousands of office?goers, IT professionals, students and even ambulances have been held in prolonged gridlock and commuters have reported delays of 40–50 minutes to cover just a few kilometres. The sustained jams have disrupted schedules, delayed services and increased travel stress across North Bhubaneswar. Authorities have acknowledged high levels of congestion during peak hours. The government had earlier planned parallel roads on both sides of the..

Next Story
Infrastructure Transport

457-km Andhra Stretch Of Kharagpur Amaravati Highway Cleared

Andhra Pradesh received central approval for the Kharagpur-Amaravati greenfield highway, a 1,107-km corridor that includes a 457-km four-lane stretch within the state. The Andhra Pradesh Chief Minister expressed gratitude to the Prime Minister and the Union Road Transport Minister after the clearance of the project, which carries an estimated cost of Rs 32,000 crore, equivalent to Rs 320 billion (Rs 320 bn). The announcement was reported by PTI. The corridor is intended to establish a direct link between Andhra Pradesh and eastern India and to strengthen regional connectivity. Officials said t..

Next Story
Infrastructure Urban

NHAI Extends Northern RRR Tender Deadline To September 23

The National Highways Authority of India (NHAI) has extended the tender deadline for the northern part of the Regional Ring Road (RRR) in Telangana to September 23, the authority announced. Bids had been scheduled to be opened on August 21 but the process was postponed for reasons known to Central government officials, a senior Roads and Buildings official said. The extension marks the latest delay in a procurement sequence that has seen multiple revisions to the timetable. The NHAI had invited bids on November 11, 2025, for the construction of the 161-km, six-lane Sangareddy-Choutuppal stretc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code