Supreme Court Clears JSW Steel’s Rs 20,000-Crore Bhushan Power Acquisition

The Supreme Court has given the green light for JSW Steel to acquire Bhushan Power and Steel Ltd (BPSL) in a Rs 19,700-crore deal, overturning a previous order that had directed the liquidation of the bankrupt company. The ruling marks the end of a prolonged legal battle and brings clarity to one of the most high-profile cases under the Insolvency and Bankruptcy Code (IBC).

A bench led by Chief Justice of India BR Gavai observed that reversing the consistent decisions of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) could have serious consequences. Both tribunals had earlier approved JSW Steel’s resolution plan, confirming its eligibility as a successful resolution applicant under the IBC framework.

Friday’s verdict effectively paves the way for JSW Steel to complete its acquisition, allowing the company to strengthen its position in eastern India and expand overall production capacity. The deal is expected to provide JSW Steel with a strategic advantage in the steel sector, especially in the power and infrastructure segment, where BPSL has long-standing operations.

The Supreme Court’s decision underscores the judiciary’s focus on ensuring that resolution processes under the IBC are respected and implemented, rather than reversed, once validated by competent tribunals. Analysts believe this ruling will instill confidence among investors and industry players looking at distressed asset acquisitions in India, as it reaffirms that the legal framework governing insolvency will be upheld.

With this acquisition, JSW Steel is poised to enhance operational efficiencies, broaden its product portfolio, and strengthen its market share. The move also signals a trend where large steel producers are consolidating assets to achieve scale and competitiveness in India’s growing infrastructure and construction sectors.

This landmark decision by the Supreme Court not only resolves a long-standing dispute but also sets a precedent for the implementation of IBC-compliant resolutions, potentially shaping the future of corporate restructuring and strategic acquisitions in India’s steel industry.