Supreme Court Rejects JSW Steel’s ₹19,700 Cr Resolution Plan for Bhushan Power; Orders Liquidation

The Supreme Court rejected the resolution plan submitted by JSW Steel Ltd for Bhushan Steel and Power Ltd (BSPL), calling it illegal and in violation of the IBC, and ordered the liquidation of BSPL under Section 33(1).  

The plan was previously approved by NCLT and NCLAT. The Court noted that JSW Steel had not complied with the terms of the approved resolution plan for about two years, undermining the objectives of the IBC. 

The bench criticized the Resolution Professional and the Committee of Creditors (CoC) for failing to uphold their statutory duties and for approving a plan that contravened mandatory IBC provisions.

As a result, JSW is awaiting the detailed judgment to decide its next course of action.