Supreme Court reverses order, allows JSW Steel to acquire Bhushan Steel in Rs 20,000-cr deal

Reversing its own order, the Supreme Court cleared the path for the acquisition of Bhushan Power and Steel Ltd (BPSL) by JSW Steel in a Rs 20,000-crore deal. In the earlier order, the apex court had directed the liquidation of the bankrupt company. 

The Rs 19,700-crore resolution plan furnished by JSW Steel was cleared by a bench led by Chief Justice of India BR Gavai on Friday. The bench said that the company met all the parameters required as a successful resolution applicant under the Insolvency and Bankruptcy Code (IBC).

CJI Gavai noted that overturning the consistent views of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) – both of which had upheld JSW’s resolution plan for Bhushan Steel – would have created serious consequences. 

“Reversing concurrent decisions by the NCLT and the NCLAT will result in a disaster,” he said.

Meanwhile, shares of JSW Steel climbed 1.56 per cent in Friday's early trade to hit an all-time high of Rs 1,167. Later, the stock gave up its entire gains due to some profit booking at higher levels and was last seen trading 0.73 per cent lower at Rs 1,140.70. At this level, it has gained 25.97 per cent in 2025 so far.

THE JSW-BHUSHAN BATTLE

The acquisition of Bhushan Power & Steel Limited (BPSL) has been the subject of a prolonged legal dispute. Both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) had approved JSW Steel's acquisition plan for BPSL. However, a two-judge division bench of the Supreme Court had earlier rejected the takeover, directing that the company be liquidated instead, citing concerns about the eligibility of the plan.

This ruling by the Supreme Court provides clarity on one of the most significant cases under the Insolvency and Bankruptcy Code (IBC) framework.

Following the Supreme Court's latest decision, JSW Steel can proceed with its Rs 20,000-crore acquisition of BPSL. The acquisition is expected to help JSW Steel strengthen its presence in eastern India and increase its overall production capacity.