Supreme Court Reserves Verdict in ₹19,700 Crore JSW-Bhushan Power Dispute
The Supreme Court has reserved its verdict in the high-profile dispute between JSW Steel and Bhushan Power & Steel Limited (BPSL) regarding the company’s liquidation and the rejection of JSW’s ₹19,700 crore resolution plan. The hearings began on 7 August and concluded on 11 August before a Bench led by Chief Justice BR Gavai, along with Justices Satish Chandra Sharma and Vinod Chandran.
The Court heard arguments on key issues, including the Committee of Creditors’ (CoC) powers after a resolution plan is approved, the distribution of EBITDA (earnings before interest, tax, depreciation, and amortisation), and compliance with working capital commitments.
Senior Advocate Neeraj Kishan Kaul, for JSW Steel, argued that the company had taken over a loss-making entity and implemented the plan despite delays caused by Enforcement Directorate (ED) asset attachments. He opposed the CoC’s demand for an additional ₹6,000 crore, warning it could set a dangerous precedent.
Senior Advocate Dhruv Mehta, for the former promoters, countered that once a plan is approved, the CoC cannot revisit it and any issues must be addressed through the National Company Law Tribunal (NCLT). He stressed that post-approval profits cannot be used to reopen the plan under the Insolvency and Bankruptcy Code (IBC).
The dispute traces back to the Supreme Court’s 2 May 2025 ruling, which struck down JSW’s plan and ordered liquidation. This was later recalled on 31 July 2025 after the Court admitted it might have misapplied IBC principles.
JSW’s resolution plan, approved in 2019, was challenged by the ED over alleged money laundering by BPSL’s previous promoters. The case has been closely followed in corporate and legal circles due to its potential impact on insolvency proceedings in India.
