The Supreme Court has ordered a status quo on the liquidation of Bhushan Power and Steel Ltd (BPSL), temporarily pausing further proceedings by the National Company Law Tribunal (NCLT). The order was issued on May 27, 2025, in response to a plea from JSW Steel, which sought time to file a review petition against the Court’s earlier decision that set aside its ₹19,300 crore resolution plan.
A bench comprising Justices B.V. Nagarathna and Satish Chandra Sharma directed JSW Steel to file its review petition within the limitation period of 30 days. The Court clarified that no action will be taken in the liquidation proceedings until the review petition is considered.
On May 2, 2025, the Supreme Court cancelled JSW Steel’s resolution plan for BPSL, citing non-compliance with certain provisions of the Insolvency and Bankruptcy Code (IBC), including delays in implementing the plan. The resolution plan, originally approved by the NCLT in September 2019 and upheld by the NCLAT in February 2020, involved JSW Steel acquiring BPSL for ₹19,300 crore.
Read more: Bhushan Power Acquisition Cancelled: JSW Steel Seeks ₹19,300 Crore Refund!
Following the May 2, ruling, Sanjay Singhal, the former promoter of BPSL, approached the NCLT seeking immediate initiation of liquidation. His counsel argued that the Supreme Court had already acknowledged his standing in the matter. JSW Steel opposed this move and requested the Court to stay the process for 60 days to allow time for review.
As of 31 March 2024, JSW Steel had ₹14,091 crore in net assets linked to BPSL on its consolidated balance sheet. The BPSL plant in Odisha has a capacity of 4.5 million tonnes per annum and is a part of JSW’s total domestic steel production capacity of 34.2 MTPA.
The NCLT proceedings are to be deferred until June 10, 2025, as proposed by Solicitor General Tushar Mehta, who represented the Committee of Creditors. The review petition from JSW Steel is due by June 2, 2025.
As of 09:23 AM on May 27, 2025, JSW Steel share price was trading at ₹1026.70, a 0.54% decrease, with a 6.31% increase over the past 6 months and a 14.20% the past year.
The liquidation process remains paused until the review petition is filed and heard by the Supreme Court. A significant ₹14,091 crore in net assets (as of March 2024) for JSW Steel is linked to BPSL, underscoring the high stakes.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 27, 2025, 3:14 PM IST
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