Supreme Court Rejects JSW Steel's Resolution Plan for Bhushan Steel

The Supreme Court has annulled JSW Steel's resolution plan for Bhushan Steel and Power Ltd, citing violations of the Insolvency and Bankruptcy Code. The Court ordered the liquidation of BSPL and criticized the resolution process's stakeholders. Detailed grounds for the verdict will be clarified upon receiving the Court's order.

The Supreme Court has nullified the resolution proposal submitted by JSW Steel Ltd for Bhushan Steel and Power Ltd (BSPL), deeming it illegal and in breach of the Insolvency and Bankruptcy Code (IBC).

Justices Bela M Trivedi and Satish Chandra Sharma have ordered the commencement of liquidation proceedings for BSPL under the IBC. The Court condemned the actions of all involved parties — the resolution professional, the Committee of Creditors (CoC), and the National Company Law Tribunal (NCLT) — for facilitating what it described as a 'flagrant violation' of the IBC.

In a regulatory statement filed with the National Stock Exchange and the BSE Ltd, JSW Steel Ltd acknowledged the Court's decision, expressing intent to review the judgment in detail once the formal order is received. The statement also indicated the company plans to determine its subsequent course of action after consulting with legal advisors.

(With inputs from agencies.)