In a landmark decision, the Supreme Court of India on Friday, September 26, 2025, upheld JSW Steel's ₹19,700 crore acquisition of the debt-ridden Bhushan Power and Steel Ltd (BPSL), bringing a conclusive end to a protracted and complex legal battle. The verdict provides significant relief to JSW Steel, dramatically reversing an earlier Supreme Court order from May 2025 that had directed the liquidation of BPSL and invalidated the takeover. This ruling clears the path for one of the most significant resolutions under India's Insolvency and Bankruptcy Code (IBC).
Table of Contents
- The Supreme Court's Decisive Ruling
- A Dramatic Reversal of an Earlier Order
- What the Verdict Means for JSW Steel and Its Investors
- Frequently Asked Questions (FAQs)
A special three-judge bench led by Chief Justice of India B.R. Gavai delivered the final verdict, providing much-needed clarity and finality to the high-profile case. The court's decision was based on several key principles:
-
Upholding Commercial Wisdom: The bench strongly reaffirmed the principle that the "commercial wisdom" of the Committee of Creditors (CoC) in approving a resolution plan is paramount and should not be second-guessed by the courts.
-
Rejection of All Challenges: The court dismissed all challenges raised by BPSL's former promoters and certain dissenting creditors, effectively validating the resolution plan that had been approved by the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
-
Finality of the IBC Process: The CJI noted that reopening claims after a resolution plan has been approved would amount to "committing violence" on the provisions of the IBC. The court also observed that reversing the takeover at this stage after JSW Steel had already invested heavily in reviving the loss-making entity and turning it profitable would lead to "disastrous results".
To gauge how the market has priced in this landmark Supreme Court verdict, check the latest JSW Steel share price along with updated charts and key valuation ratios.
The ruling is particularly significant because it overturns a May 2025 order from a different two-judge bench of the Supreme Court. That earlier verdict had declared JSW's resolution plan "illegal" and had ordered the liquidation of BPSL, sending shockwaves through the Indian banking and corporate sectors and putting the very credibility of the IBC framework to the test. The latest decision, made after the court recalled its previous judgment to rehear the entire case in July 2025, brings a conclusive and final end to the legal uncertainty.
While the immediate impact on JSW Steel's share price was positive following the news, the long-term implications of this legal victory are far more profound for the company and its investors.
-
End of a Massive Uncertainty: The biggest takeaway is the removal of a massive cloud of legal and financial uncertainty that has hung over the company for years. The risk of the acquisition being unwound is now gone.
-
Strategic Capacity Expansion Secured: The acquisition of BPSL is a cornerstone of JSW Steel's growth strategy. It significantly boosted the company's production capacity by nearly 65% since 2021 and provided a strong foothold in the iron ore-rich eastern Indian market, strengthening its position as one of India's largest steelmakers.
-
Financial Win for JSW Steel: The Supreme Court's order also provided a direct financial benefit by rejecting the BPSL lenders' demand for a share of the company's earnings (EBITDA) during the insolvency resolution period. This protects JSW from additional payouts and reinforces the financial terms of the original resolution plan.
/content-assets/0f448415e98141e5accd9bd7b953e590.png)
-
Strengthening the Entire IBC Framework: Beyond JSW Steel, the verdict is a landmark judgment for India's corporate insolvency ecosystem. By upholding the finality of an approved resolution plan, the Supreme Court has reinforced the credibility and effectiveness of the IBC, which is a major positive for the banking sector and all companies engaging in such resolutions.
For JSW Steel's investors, this verdict is a decisive victory. It secures a strategically vital asset, removes a major legal overhang, and provides a clear and positive path forward, allowing the company to fully integrate BPSL and realise the long-term value from this major acquisition.
/content-assets/8bcf2a86fc804e20a6c1ad439fa1c218.png)
There’s a comprehensive market update from Upstox that highlights the reasons behind India’s steel price decline and debates whether JSW Steel can maintain profitability against China’s price war.
Q1: What was the Supreme Court's verdict in the JSW Steel-BPSL case?
A1: The Supreme Court upheld JSW Steel's ₹19,700 crore acquisition of Bhushan Power and Steel Ltd (BPSL), reversing its own earlier order from May 2025 that had directed BPSL's liquidation.
Q2: Why is this verdict so significant?
A2: It is significant because it brings a final end to a long and complex legal battle, removes a major uncertainty for JSW Steel, and reinforces the credibility of India's Insolvency and Bankruptcy Code (IBC) by upholding the "commercial wisdom" of creditors.
Q3: How does this acquisition benefit JSW Steel?
A3: The acquisition is strategically vital for JSW Steel. It significantly boosts its production capacity, gives it a strong presence in the eastern Indian market, and allows it to benefit from the operational turnaround it has already implemented at BPSL.
Q4: Did JSW Steel have to make any additional payments?
A4: No. The Supreme Court rejected the lenders' demand for a share of the earnings generated by BPSL during the resolution period, protecting JSW Steel from additional financial payouts.
Q5: What was the issue with the earlier Supreme Court order?
A5: An earlier two-judge bench in May 2025 had invalidated the acquisition and ordered BPSL's liquidation, a decision that was seen as a major setback for the IBC framework. The new verdict, from a larger bench led by the Chief Justice, has overturned that decision.