In a major relief for JSW Steel, the Supreme Court on Friday upheld the company’s resolution plan for Bhushan Power and Steel Ltd (BPSL), dismissing objections raised by ex-promoters and certain creditors.
The bench led by CJI BR Gavai with Justices SC Sharma and K Vinod Chandran noted that while the appellants had locus to approach the court, their conduct showed attempts to delay the Corporate Insolvency Resolution Process (CIRP). The court observed that the Committee of Creditors (CoC) continues to exist until the resolution plan is implemented, and emphasized that the CoC’s commercial wisdom cannot be interfered with by the judiciary.
On the delays in implementing the plan, the court clarified that these were neither attributable to the CoC nor to the Successful Resolution Applicant (SRA), JSW Steel.
The ruling puts to rest years of litigation over BPSL’s future and ensures that JSW Steel retains control of the bankrupt company. This comes as a significant positive for JSW, which had already infused funds and nearly doubled BPSL’s capacity since taking charge in 2021.
