NEW DELHI, JULY 31 2025 — In a significant turnaround, the Supreme Court of India on Thursday recalled its May 2, 2024 judgment that had rejected JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power and Steel Ltd (BPSL) and ordered its liquidation.
A Bench comprising Chief Justice of India (CJI) BR Gavai and Justice Satish Chandra Sharma held that the earlier judgment failed to correctly consider the legal position and warranted a fresh hearing.
“Prima facie we are of the view that the impugned judgment does not correctly consider the legal position as has been laid down in catena of judgments. Apart from that, it is submitted that various factual aspects have been taken into consideration, arguments which were not advanced were also considered though this position is disputed. This is a fit case wherein judgment under review need to be recalled and the matter is to be considered afresh,” the Court observed.
The Court has listed the review petitions for detailed hearing on August 7, 2025.
BACKGROUND: MAY 2 JUDGMENT DECLARED JSW’S PLAN ILLEGAL
On May 2, 2024, a Bench of Justices Bela Trivedi and Satish Chandra Sharma rejected JSW Steel’s resolution plan, ruling it illegal and in violation of the Insolvency and Bankruptcy Code (IBC). The Court directed the liquidation of BPSL, overturning approvals by both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
The May 2 ruling criticized the Committee of Creditors (CoC) for approving the plan, and questioned whether the resolution applicant fulfilled post-approval obligations essential under the IBC.
JSW STEEL’S RESOLUTION PLAN: ₹19,700 CRORE, APPROVED IN 2019
JSW Steel had emerged as the successful resolution applicant in 2019, proposing a payment of over ₹19,000 crore to financial creditors. The plan was approved by:
NCLT in September 2019
NCLAT, which upheld the NCLT order despite enforcement-related objections
However, the Enforcement Directorate (ED) later attached assets of BPSL, leading to complex litigation and delays in implementation.
CJI Gavai: “We Should Also Look at the Larger Picture”
During Thursday’s hearing, Solicitor General Tushar Mehta and Senior Advocate Neeraj Kishan Kaul (representing JSW Steel) presented strong arguments highlighting legal and practical concerns arising from the May 2 decision.
SG Mehta argued:
“Section 29A disqualifies a resolution applicant, but it was never pressed in this case. Yet, the judgment is replete with findings about it.”
He also stressed the practical consequences:
“JSW has made it a healthy company.”
“JSW Steel had been running BPSL since 2021 with 25,000 people currently employed.”
CJI Gavai acknowledged the concerns:
“My learned brother (Justice Satish Chandra Sharma) is also agreeable that it requires reconsideration. We should also look at the larger picture—25,000 people cannot be thrown on the road.”
JSW Steel’s Argument: ₹30,000 Crore Invested, Turnaround Achieved
Senior Advocate Neeraj Kishan Kaul further contended:
“JSW had infused ₹30,000 crore into BPSL, cleared all dues, and increased turnover.”
“After all this, the judgment sends a dangerous signal. No one has found fault with the plan. Every allegation pertains only to its implementation.”
Kaul also raised serious concerns about the use of Article 142 to overturn a resolution plan and the Court’s reliance on arguments that were never raised during hearings.
He noted that the ED’s provisional attachment happened after the resolution plan’s approval, leading to years of delay.
RESOLUTION PROFESSIONAL CONFIRMS TIMELINES WERE EXTENDED
Senior Advocate Arvind Nigam, representing the Resolution Professional, submitted that both the NCLT and NCLAT had duly extended the resolution timeline, consistent with the IBC framework.
NEXT HEARING: AUGUST 7, 2025
The Supreme Court will now rehear the matter and examine the validity of the resolution plan, procedural aspects, and wider economic impact during the August 7 hearing.
LEGAL REPRESENTATION
Solicitor General Tushar Mehta appeared for the Union of India
Senior Advocate Neeraj Kishan Kaul represented JSW Steel
Senior Advocate Arvind Nigam represented the Resolution Professional
