Supreme Court clears JSW Steel’s Rs 20,000-crore acquisition of Bhushan Power

New Delhi: The Supreme Court on Friday cleared the path for JSW Steel to acquire Bhushan Power and Steel Ltd (BPSL) in a Rs 20,000-crore deal, reversing its earlier order that had directed the liquidation of the bankrupt company.

A bench led by Chief Justice of India BR Gavai approved JSW Steel’s Rs 19,700-crore resolution plan, observing that the company had fulfilled all requirements as a successful resolution applicant under the Insolvency and Bankruptcy Code (IBC).

Supreme Court reasoning

CJI Gavai noted that overturning the consistent decisions of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), both of which had upheld the resolution plan, would have caused serious consequences. He said, “Reversing concurrent decisions by the NCLT and the NCLAT will result in a disaster.”

The Supreme Court’s ruling effectively nullifies the earlier two-judge division bench order that had refused to approve JSW Steel’s plan, citing concerns about eligibility, and had directed BPSL’s liquidation instead.

Legal battle and approvals

The acquisition has been at the centre of a prolonged legal dispute. Both the NCLT and the NCLAT had approved JSW Steel’s resolution plan, but the Supreme Court’s initial refusal created uncertainty over the future of BPSL. Friday’s judgment restores the plan and brings clarity to one of the most high-profile cases under the IBC framework.

Strategic significance of the acquisition

With the Supreme Court’s approval, JSW Steel can now proceed with the takeover, which is expected to strengthen its footprint in eastern India and enhance its overall production capacity. Analysts believe the deal could significantly boost JSW Steel’s market share and production efficiency, while also preserving jobs at the BPSL units.

The acquisition aligns with JSW Steel’s long-term strategy to expand operations and consolidate its position as one of India’s leading steel manufacturers.

Conclusion

The Supreme Court’s decision marks a significant development in India’s corporate insolvency landscape, reaffirming the authority of the NCLT and NCLAT in resolution processes under the IBC. It also clears a major hurdle for JSW Steel’s expansion ambitions, setting a precedent for future high-value acquisitions of distressed assets in India.