JSW Steel on Thursday (July 31, 2025) got relief from the Supreme Court in the matter of the liquidation of Bhushan Power and Steel.
The Apex Court withdrew its own decision delivered on May 2.
The order was given for liquidation of Bhushan Power and Steel
The company was acquired by JSW under the revival plan of Rs 19,700 crore.
A bench headed by CJI BR Gavai said that the Supreme Court cannot use its power under Article 142 to do injustice to 25,000 employees of a revived company
The Supreme Court will hear the case next on August 7
In an order passed on May 2 this year, a bench of Justices Bela M. Trivedi and SC Sharma ordered the liquidation of BPSL, holding that JSW Steel’s Rs 19,300 crore resolution plan for the bankrupt company was not in consonance with the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.
How events panned out
A review petition was filed by JSW Steel Ltd on June 25, 2025, before the Supreme Court, along with the other review petitions filed by committee of creditors (‘CoC’) and Resolution Professional against the judgment dated May 02, 2025, passed by the bench comprising of Justice Bela and Sharma, in the batch of appeals filed by the CoC; Directorate of Enforcement (‘ED’), operational creditors (such as Kalyani Transco, Jaldhi Overseas, Medi Carrier, CJ Darcl Logistics), ex-promoters (Sanjay Singal and others), and the State of Odisha.
The Supreme Court issued a notice on July 29, 2025, directing the review petitions to be listed for open court hearing today.
The review petitions were accordingly listed today before a special bench comprising of Chief Justice Satish Chandra Sharma, where in the court heard at length Tushar Mehta (appearing for CoC), Ld. SG, Neeraj Kishan Kaul, Ld. Sr. Counsel (for JSW) and Dhruv Mehta, Ld. Senior Counsel and the held that it is of prima facie view that the impugned order is contrary to rhetoric settled principle of law as laid down by this court in Ghanashyam Mishra & Sons (P) Ltd. vs Edelweiss Asset Reconstruction Co. Ltd., (2021) 9 SCC 65, Kalpraj Dharamshi vs Kotak Investment Advisors Ltd., (2021) 10 SCC 401, Swiss Ribbons (P) Ltd. vs Union of India, (2019) 4 SCC 17, BK Educational Services Pvt. Ltd. vs Parag Gupta and Associates, and K. Sashidhar vs Indian Overseas Bank, (2019) 12 SCC 150. Further, as pointed out by the parties, there are several factual errors which have been wrongly recorded in the impugned order and were never argued by the parties. Thus, the court held that the present is a fit case to allow the review petitions, and accordingly allowed the review petitions filed by JSW, CoC and RP.
JSW Steel was represented before the Hon’ble Supreme Court by Senior Advocates Neeraj Kishan Kaul and Gopal Jain, along with a legal team from Karanjawala & Co., including Nandini Gore (senior partner), Tahira Karanjawala (partner), Swati Bhardwaj, Akarsh Sharma, Shreyas Maheshwari, Manvi Rastogi, Sharanya Ghosh, and Mahek Karanjawala and a team of AZB & Partners led by Rajendra Barot, senior partner along with Vivek Shetty, Suharsh Sinha, Sherna Doongaji and Akhilesh Menezes.
Committee of Creditors was represented by Tushar Mehta, Ld. Solicitor General of India (‘Ld. SG’) along with Raunak Dhillon and the Resolution Professional is represented by Navin Pahwa, Ld. Senior Counsel along with Shardul S. Shroff.
(With inputs from ANI)
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