The Supreme Court of India ordered a status quo on liquidation proceedings of Bhushan Power and Steel Ltd (BPSL), pending the verification of the review petition to be filed by JSW Steel. The court asked JSW Steel to file the petition within the prescribed limitation period.
A Supreme Court bench, comprising Justice B.V. Nagarathna and Justice Satish Chandra Sharma, passed an order directing status quo in the liquidation proceedings of BPSL, currently pending before the National Company Law Tribunal (NCLT).
The direction was issued in Special Leave Petition filed by JSW Steel Ltd bearing Diary No. 29406/2025, seeking abeyance of any further hearing applications filed before the erstwhile promoter to expedite liquidation proceedings pending before Ld. NCLT.
The Apex Court observed that as the limitation period for filing a review petition against the Supreme Court’s earlier judgment dated May 2, 2025 (which rejected JSW’s Rs 19,700 crore resolution plan for BPSL) was still running, and in light of this, a status quo on proceedings before the Ld. NCLT was required so that practical ramifications of the judgment may not be further complicated.
JSW Steel acquired BPSL in September 2019 for about Rs 19,300 crore after the NCLT approved its resolution plan. The acquisition was completed in March 2021. JSW faced a major setback when its resolution plan was set aside by the top court on May 2, 2025, on grounds of non-compliance with key provisions of the Insolvency and Bankruptcy Code (IBC), particularly the failure to adhere strictly to the plan’s approved timeline.
Tushar Mehta, Ld. Solicitor General of India appeared on behalf of the Committee of Creditors, the Insolvency and Bankruptcy Board of India and the Union of India. Neeraj Kishan Kaul and Gopal Jain, Ld. Senior Advocates appeared on behalf of JSW Steel Ltd. Pinaki Misra, Ld. Senior Advocate appeared on behalf of Bhushan Power and Steel. Dhruv Mehta, Ld. Sr. Adv. appeared on behalf of the ex-promoters, i.e. Sanjay Singhal.
The Successful Resolution Applicant, i.e., JSW and Corporate Debtor, BPSL were led by a team of Karanjawala & Co.
