SC Rules in Favour of JSW Steel in Bhushan Steel Acquisition Case
Hon’ble Supreme Court has ruled in favour of JSW Steel by upholding the original 2017, Rs. 19,700 crore resolution plan for Bhushan Steel. This is a complete reversal of the Supreme Court’s 2nd May 2025 judgement which had found Bhushan Steel’s resolution process in “flagrant violation and contravention” of the Insolvency and Bankruptcy Code (IBC), and had directed the liquidation of Bhushan Steel. It must be noted that this order came 5 years after JSW Steel had acquired Bhushan Steel in 2021.
The 3-judge bench led by CJI B.R Gavai stated that liquidation of Bhushan Steel would amount to penalising JSW Steel. The judgement said, “This will defeat the very purpose of IBC to confer sanctity to the finality of duly approved resolution plan”. Thus, the apex court has dismissed appeals regarding revision of the IBC proceedings in this case.
Notably, JSW Steel has turned Bhushan Steel from a debt-laden loss-making company to a profit-making entity. In fact, in 2017, Bhushan Steel’s debts amounted to about Rs. 47,000 crore. JSW Steel’s lawyer, Mr. Neeraj Kishan Kaul highlighted that Bhushan Steel currently employs 25,000 employees and that since acquisition, the company’s crude Steel capacity has increased to 4.5 Million Metric Tonne Per Annum (MMTPA) from 2.5 MMTPA.
