Court allows JSW Steel to review cancelled resolution plan order Supreme Court halts Bhushan Steel liquidation case

New Delhi

The Supreme Court has put a stop to the liquidation of Bhushan Power and Steel Ltd. (BPSL), giving temporary relief to JSW Steel. The court allowed JSW Steel to file a review petition against its earlier order that canceled the company’s Rs 19,300 crore resolution plan.

This plan had been approved under the Insolvency and Bankruptcy Code (IBC), and JSW Steel had already invested heavily to revive BPSL. The May 2 ruling that rejected the resolution plan was a major blow to the company.

A Supreme Court bench said that no further action on BPSL’s liquidation should take place until the review petition is decided. The court also asked JSW Steel to file the petition within 30 days. The order to maintain “status quo” means all liquidation efforts must pause for now.

Sanjay Singhal, BPSL’s former promoter, had asked the National Company Law Tribunal (NCLT) to begin liquidation based on the court’s earlier ruling. But the new order blocks this move, offering JSW Steel a chance to defend its position.

JSW Steel had acquired BPSL over five years ago and owns a major plant in Odisha with a 4.5 million tonnes annual capacity. This plant is crucial to JSW’s total steel output in India.

The Supreme Court had earlier found faults in how the resolution plan was carried out, citing delays and failure to meet deadlines. However, JSW claims it followed the law and revived the company properly. The case will now proceed with the review petition.