The Supreme Court of India today delivered a pivotal order allowing the review petitions filed by JSW Steel, lenders, and other stakeholders challenging the May 2, 2025, judgment which had rejected JSW Steel’s resolution plan for Bhushan Power and Steel Limited (BPSL) and directed the company’s liquidation.
A bench led by Chief Justice B.R. Gavai and Justice Satish Chandra Sharma, after hearing oral submissions in open court, expressed prima facie views that the original verdict did not correctly interpret the settled legal principles laid down by previous judgments. The court also noted that it may have erroneously considered factual aspects that were not fully pleaded or argued by the parties during the initial hearing. Despite dispute from the respondents on some points, the court found these concerns significant enough to hold that the matter deserves to be reconsidered.
The apex court refrained from delving into extensive documentary evidence at this stage, restricting its review only to the judgment itself. It highlighted that some arguments which were absent during the initial hearing were inappropriately taken into account while delivering the impugned order. Based on this, the court concluded that it was a fit case to recall the earlier judgment and reconsider the matter afresh, thereby allowing the review petition.
The matter to be put up for hearing on August 07, 2025.
Highlights from hearing on review petition
The court recognized the importance of restricting its present analysis solely to the contents of the judgment under review and not reopening all factual contentions. The bench observed that neither the National Company Law Tribunal (NCLT) nor the National Company Law Appellate Tribunal (NCLAT), nor the Supreme Court, has jurisdiction to question the commercial wisdom of the Committee of Creditors (CoC), a stance firmly established in prior rulings.CoC was represented by Mr Tushar Mehta, Ld Solicitor General of India, assisted by a team from Cyril Amarchand Mangaldas comprising of partner Raunak Dhillon, principal associates Aishwarya Gupta and Isha Malik and associate Anchit Jasuja.
During the exchanges, the court focused on critical practical concerns, such as the fate of approximately 25,000 employees of Bhushan Steel and the considerable investments brought in by JSW Steel.
Senior Advocate Neeraj Kishan Kaul, representing JSW Steel, emphasized JSW’s infusion of INR 20,000 crores into Bhushan Steel, payment in full to creditors, workforce growth from 18,000 to 25,000 employees, increased turnover and capacity, and significant fresh capital expenditure.
The Court appeared particularly concerned about the social and economic impact of liquidation on workers and local stakeholders, highlighting that liquidation is only a last resort under the Insolvency and Bankruptcy Code (IBC).
Senior Advocate Dhruv Mehta, appearing for the erstwhile promoters of Bhushan Steel, withdrew opposition to the hearing, conceding that the matter should be examined on merits. Here is a detailed review of the case.
