SC upholds JSW's ₹19,700 crore Bhushan Power and Steel deal

The Supreme Court on Friday upheld JSW Steel Ltd's ₹19,700 crore resolution plan to acquire Bhushan Power and Steel Ltd, reversing a May 2 order that had quashed the deal and directed liquidation. A three-judge bench led by Chief Justice B.R. Gavai and including Justices Satish Chandra Sharma and K. Vinod Chandran dismissed appeals by former promoters and certain creditors, saying the decisions of the committee of creditors must be respected and noting that lower tribunals had already approved the plan.

The bench said overturning consistent rulings of the National Company Law Tribunal and the National Company Law Appellate Tribunal would have serious consequences, with Chief Justice Gavai warning that reversing concurrent decisions would "result in a disaster." The court had reserved its judgment on August 11 after rehearing the matter following a July 31 order that recalled the earlier May 2 judgment.

Bhushan Power and Steel, once among the largest defaulters flagged by the Reserve Bank of India in 2017, entered insolvency after defaulting on loans exceeding ₹47,000 crore. JSW emerged as the highest bidder in 2018 and its resolution plan was approved by the committee of...