India’s apex court has agreed to hear JSW Steel’s review petition in open court regarding its ₹19,350 crore acquisition of Bhushan Power and Steel Ltd (BPSL), offering the company a critical opportunity to safeguard its strategic investment and operational control. The decision also comes as a major relief to key lenders exposed to BPSL.
In a significant turn for Indian corporate law and the steel industry, the Supreme Court of India has agreed to hear the review petition filed by JSW Steel in open court. The petition challenges the May 2 judgment that annulled the company’s ₹19,350 crore acquisition of Bhushan Power and Steel Ltd (BPSL), ordering its liquidation.
This development is seen as a major relief for JSW Steel and for the country’s banking sector, especially for lenders like the State Bank of India (SBI) and Punjab National Bank (PNB), who had supported the review plea. Together, the banks are facing a combined exposure of nearly ₹34,000 crore, which could be severely impacted if the liquidation proceeds.
JSW Steel had acquired BPSL in March 2021 under the Insolvency and Bankruptcy Code (IBC) after it was listed among the Reserve Bank of India’s original 12 large defaulters in 2017. The company owed over ₹47,000 crore to lenders at the time. Since acquisition, BPSL has remained profitable, operationally viable, and an asset that has added significant value under JSW Steel’s management.
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The Supreme Court’s decision to shift the review into open court proceedings indicates the legal and financial complexities at stake. According to legal observers, this case could set a precedent on how strict adherence to IBC timelines is weighed against the commercial practicality of large-scale corporate resolutions.
The market responded positively. JSW Steel shares climbed nearly 2% intraday, hitting ₹1,052 on the BSE. Over longer durations, the stock has remained a strong performer—up 15% year-to-date, 65% in the last three years, and 385% over the last five years, delivering multibagger returns.
The earlier May verdict had called for the return of ₹19,350 crore to JSW Steel and found that the IBC’s mandated timelines were violated. The apex court’s interim order on May 26, which stayed the liquidation, now stands extended as the review proceeds.
Financial analysts suggest that a favorable verdict for JSW Steel could restore investor confidence in India’s resolution mechanisms and prevent long-term erosion of lender assets.
The next hearing date is yet to be announced, but all eyes will remain on this high-stakes battle that tests the resilience of India’s insolvency framework and investor trust in acquisition through legal resolution.
