Supreme Court puts Bhushan Power liquidation on hold as JSW seeks review

India Today

26-05-2025

In a key development in the Bhushan Power and Steel Ltd (BPSL) case, the Supreme Court on Monday ordered a status quo on liquidation proceedings before the National Company Law Tribunal (NCLT), granting temporary relief to JSW Steel, which is seeking to file a review petition.The top court was hearing a plea filed by JSW Steel challenging the ongoing liquidation process of BSPL. Senior counsel appearing for JSW submitted that the company is exercising its right to file a review of the court's earlier ruling and that the statutory limitation period for doing so has not yet expired.The counsel also informed the court that necessary steps were already underway to formally submit the review petition.At the same time, the former promoter of BSPL—referred to as Respondent No. 1—was pushing for swift implementation of the apex court's earlier directive, which would trigger the liquidation proceedings. JSW argued that going ahead with the liquidation before its review plea is considered would prejudice its legal rights and render the petition infructuous.Recognising the concerns, the Supreme Court observed that a practical solution was necessary to ensure justice is served. 'Without expressing any opinion on the merits of the matter, the interest of justice would be subserved if the status quo is maintained,' the court said.Accordingly, the bench ordered that the current status quo with regard to the liquidation proceedings should be maintained until the review petition is filed and disposed of.This interim order effectively pauses the liquidation process of BSPL, offering JSW a window to pursue legal recourse and protect its investment interests.The matter now hinges on the outcome of the impending review petition, which could influence the future of one of India's largest debt resolution cases under the Insolvency and Bankruptcy Code (IBC).advertisementBSPL, once among India's leading steelmakers, was dragged into insolvency proceedings over mounting debt, and JSW Steel had emerged as a key contender for its assets. The legal wrangle has drawn significant attention given the size of the asset and the broader implications for India's insolvency regime.