SC to re-examine judgment scrapping JSW Steel's resolution plan for BPSL

Petitioners sought review of judgment, which found Rs 14,300 Cr resolution plan of the BPSL, was not in conformity with provisions of Insolvency and Bankruptcy Code.

New Delhi: The Supreme Court has decided to re-examine its May 2, 2025 judgment which has rejected the resolution plan by JSW Steel for M/s Bhushan Power and Steel Limited (BPSL), and ordered the liquidation of the debt-ridden company.

A bench of Chief Justice of India B R Gavai and Justice Satish Chandra Sharma ordered open court hearing on review petitions filed by JSW Steel and lenders of BPSL -- Punjab National Bank, State Bank of India and others-- on Thursday.

Review petition is considered in judges chamber through circulation of papers as per the SC rules.

The petitioners sought review of the judgment, which found Rs 19,300 Cr resolution plan of the BPSL, was not in conformity with the provisions of the Insolvency and Bankruptcy Code, 2016.

Agreeing to reconsider the matter, the court issued notice to BPSL's former promoters and creditors Kalyani Transco and others.

By the May 2, 2025 judgment, a bench of Justices Bela M Trivedi (since retired) and Satish Chandra Sharma had set aside Rs 19,300 Cr resolution plan of JSW Steel.

On May 26, 2025, the court had ordered status quo on the liquidation proceedings pending before the National Company Law Tribunal (NCLT), as the time for filing the review petition for the aggrieved party had not elapsed then.

In its May 2, 2025 judgment, the court had invoked jurisdiction conferred under Article 142 of the Constitution and directed the adjudicating authority i.e. the NCLT to initiate the liquidation proceedings against the corporate debtor-BPSL under Chapter III of the IBC and in accordance with law.

The bench had held JSW Steel did not implement the resolution plan for about two years since its approval by the NCLAT, though there was no legal impediment in implementing it. 

"Such flagrant violation of the terms of the resolution plan, has frustrated the very object and purpose of the Code," the bench said. 

The court had also noted the mala fide and dishonest intention on the part of JSW, Steel in firstly securing highest score making before CoC and then not implementing the same under the garb of pendency of proceedings, though the resolution plan was supposed to be an unconditional one.

"In our opinion, nobody should be permitted to misuse the process of law nor should be permitted to take undue advantage of the pendency of any proceedings in any Court or Tribunal," the bench said.

The court pointed out, the resolution plan, after its approval by the adjudicating authority i.e. NCLT under Section 31, is binding not only to the corporate debtor, its employees, members, creditors and the Government authorities but also to all the stakeholders including the successful resolution applicant itself.

The court had then set aside the judgments and orders of September 05, 2019 and February 17, 2020 passed by the NCLT and NCLAT respectively.