Supreme Court Halts JSW Steel's Bid for Bhushan Steel: A Major Setback in Indian Corporate Insolvency

The Supreme Court of India rejected JSW Steel's resolution plan to acquire Bhushan Steel, citing illegalities and violations of the Insolvency and Bankruptcy Code. The court criticized the resolution stakeholders for failing their duties, highlighting institutional oversight in the process, and ordered BSPL's liquidation.

The Supreme Court of India delivered a significant verdict against JSW Steel on Friday, rejecting its resolution plan to take over Bhushan Steel. The court ruled that JSW's proposal was illegal, contravening the Insolvency and Bankruptcy Code (IBC).

JSW Steel acknowledged the judgment, awaiting the formal order to strategize next steps. The court's decision followed its criticism of the resolution process, citing flagrant violations and the stakeholders' failure to adhere to statutory duties under the IBC.

The verdict, pronounced by Justices Bela M Trivedi and Satish Chandra Sharma, has mandated the liquidation of Bhushan Steel, marking a pivotal moment in the Indian corporate insolvency landscape.

(With inputs from agencies.)