SC orders status quo on Bhushan Power liquidation pending JSW review petition
JSW Steel moved the Supreme Court on May 23 to stay proceedings to liquidate Bhushan Power & Steel till the petitioner company exhausts all its legal remedies. An application to liquidate the debt-ridden Bhushan Power was pending with the Delhi bench of the NCLT.
- May 26, 2025,
- Updated May 26, 2025 2:25 PM IST
The Supreme Court on May 26 passed an order directing status quo in the liquidation proceedings of Bhushan Power & Steel Ltd (BPSL) currently pending before the National Company Law Tribunal (NCLT). The direction was issued by a bench of Justice BV Nagarathna and Justice Satish Chandra Sharma after hearing a petition filed by JSW Steel, whose resolution plan for BPSL was rejected by the Supreme Court on May 2.
The bench was hearing a special leave petition filed by JSW Steel Ltd seeking abeyance of any further hearing applications filed be erstwhile promoter to expedite liquidation proceedings pending before NCLT.
The 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 ₹19,700 crore resolution plan for BPSL) was still running and in light of this a status quo on proceedings before the NCLT was required so that practical ramifications of the judgment may not be further complicated.
JSW Steel moved the Supreme Court on May 23 to stay proceedings to liquidate Bhushan Power & Steel till the petitioner company exhausts all its legal remedies. An application to liquidate the debt-ridden Bhushan Power was pending with the Delhi bench of the NCLT.
The NCLT had started insolvency proceedings against Bhushan Power on a petition by Punjab National Bank in 2017. In 2019, it approved the resolution plan submitted by JSW Steel for the company. On May 2, the Supreme Court had set aside JSW Steel's resolution plan for Bhushan Power on a petition by operational creditor Kalyani Transco. Ruling JSW Steel's resolution plan illegal and saying it should not have been accepted by the committee of creditors of the debt-ridden company, the top court had directed the liquidation of Bhushan Power.
Advocate Neeraj Kishan Kaul, appearing for JSW Steel, said that the company still has time till Jun. 2 to file the review petition. It was a complex matter which will take some time, said Kaul. Solicitor General of India Tushar Mehta, appearing for the committee of creditors, suggested "a way out", that the matter be in the tribunal be deferred.
Tushar Mehta, 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, Senior Advocates appeared on behalf of JSW Steel Ltd. Pinaki Misra, Senior Advocate appeared on behalf of Bhushan Power and Steel Ltd. Dhruv Mehta, Senoir Advocate 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.
At 13:54 pm, the shares of JSW Steel Ltd. were up 2.1% at INR 1,029.40 on the National Stock Exchange.
The Supreme Court on May 26 passed an order directing status quo in the liquidation proceedings of Bhushan Power & Steel Ltd (BPSL) currently pending before the National Company Law Tribunal (NCLT). The direction was issued by a bench of Justice BV Nagarathna and Justice Satish Chandra Sharma after hearing a petition filed by JSW Steel, whose resolution plan for BPSL was rejected by the Supreme Court on May 2.
The bench was hearing a special leave petition filed by JSW Steel Ltd seeking abeyance of any further hearing applications filed be erstwhile promoter to expedite liquidation proceedings pending before NCLT.
The 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 ₹19,700 crore resolution plan for BPSL) was still running and in light of this a status quo on proceedings before the NCLT was required so that practical ramifications of the judgment may not be further complicated.
JSW Steel moved the Supreme Court on May 23 to stay proceedings to liquidate Bhushan Power & Steel till the petitioner company exhausts all its legal remedies. An application to liquidate the debt-ridden Bhushan Power was pending with the Delhi bench of the NCLT.
The NCLT had started insolvency proceedings against Bhushan Power on a petition by Punjab National Bank in 2017. In 2019, it approved the resolution plan submitted by JSW Steel for the company. On May 2, the Supreme Court had set aside JSW Steel's resolution plan for Bhushan Power on a petition by operational creditor Kalyani Transco. Ruling JSW Steel's resolution plan illegal and saying it should not have been accepted by the committee of creditors of the debt-ridden company, the top court had directed the liquidation of Bhushan Power.
Advocate Neeraj Kishan Kaul, appearing for JSW Steel, said that the company still has time till Jun. 2 to file the review petition. It was a complex matter which will take some time, said Kaul. Solicitor General of India Tushar Mehta, appearing for the committee of creditors, suggested "a way out", that the matter be in the tribunal be deferred.
Tushar Mehta, 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, Senior Advocates appeared on behalf of JSW Steel Ltd. Pinaki Misra, Senior Advocate appeared on behalf of Bhushan Power and Steel Ltd. Dhruv Mehta, Senoir Advocate 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.
At 13:54 pm, the shares of JSW Steel Ltd. were up 2.1% at INR 1,029.40 on the National Stock Exchange.