Supreme Court rejects JSW Resolution Plan for Bhushan Steel

The Hindu

02-05-2025

The Supreme Court, in a judgment on Friday (May 2, 2025), rejected the Resolution Plan submitted by JSW Steel for Bhushan Steel and Power Ltd.
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The National Company Law Appellate Tribunal had previously approved the Resolution Plan.
A Bench headed by Justice Bela M. Trivedi found the plan contrary to the provisions of the Insolvency and Bankruptcy Code (IBC). A copy of the judgment is yet to be published on the Supreme Court website.
In a statement, a JSW Steel spokesperson said they have 'learnt that the Hon'ble Supreme Court pronounced judgment on May 2 rejecting the Resolution Plan approved by NCLAT on certain grounds'.
'We are yet to receive the formal copy of the Order to understand the grounds for rejection in detail and its implications. Once we receive the order and are able to review the same along with our legal advisors, we will decide on our further course of action,' the statement said.
The court faulted the Committee of Creditors (CoC) for accepting the Resolution Plan. The court further directed the National Company Law Tribunal to initiate liquidation proceedings against Bhushan Steel and Power Ltd.
Justice Trivedi, who pronounced the judgment, said the Resolution Professional had failed to perform his statutory duties during the corporate insolvency resolution process, as mandated under the IBC and its associated regulations.
The Bench said the CoC was found to have approved the Resolution Plan without proper application of its commercial wisdom. The plan had contravened mandatory IBC provisions and did not protect creditors' interests and notably, the CoC accepted payments from JSW without objection, despite the plan's shortcomings, the court observed.