SC overturns own judgment, clears JSW Steel resolution plan for BPSL

The Supreme Court on Friday (September 26) overturned its own judgment and upheld JSW Steel’s ₹19,700-crore resolution plan for Bhushan Power and Steel Ltd (BPSL).

The apex court rejected a plea by the committee of creditors (CoC) seeking an additional ₹6,100 crore, citing BPSL’s EBITDA during the insolvency period. The court ruled that such claims have no basis under the Insolvency and Bankruptcy Code (IBC).

BPSL, part of the RBI’s original ‘dirty dozen’ referred for insolvency, had been at the centre of a prolonged legal battle. In May 2025, the Supreme Court had scrapped JSW’s plan, citing delays and procedural violations, and directed liquidation of the debt-laden company. However, following review petitions filed by JSW Steel and lenders in June, the matter was heard again.

During the review, banks shifted their stance and demanded the additional payout, while JSW opposed, arguing that EBITDA was not equivalent to profits and that BPSL remained in losses during the insolvency period.

The Supreme Court, after reserving judgment in August, has now restored JSW’s resolution plan.Read about our editorial guidelines and ethics policy