Supreme Court Upholds JSW Steel's $2.2 Billion Bhushan Power Acquisition Ending Eight-Year Dispute

The Supreme Court of India has upheld JSW Steel's acquisition of Bhushan Power and Steel through a Rs 19,700-crore resolution plan, reversing its earlier decision to liquidate the company. The ruling, led by Chief Justice B.R. Gavai, affirmed the National Company Law Appellate Tribunal's approval, emphasizing the legitimacy of the Committee of Creditors' commercial wisdom and the sanctity of the insolvency process. The court recognized that JSW Steel transformed Bhushan Power from a loss-making to a profitable entity, preserving thousands of jobs and fulfilling the objectives of the Insolvency and Bankruptcy Code. The decision also dismissed challenges from former promoters and operational creditors, rejected additional payment demands, and clarified that no new claims could be introduced after plan approval. Delays in plan implementation were attributed to external factors beyond JSW’s control, and Compulsorily Convertible Debentures issued by JSW were acknowledged as equity infusion. This ruling ends a prolonged legal dispute and allows JSW Steel to proceed with strengthening its position in the steel sector through the acquisition.