Supreme Court Withdraws Order for Liquidation of Bhushan Steel and Power

Quick Summary

• The Supreme Court of India recalled its May 2, 2025 verdict ordering the liquidation of Bhushan Steel and Power Limited (BSPL).
• Earlier, the court ruled JSW Steel Limited’s resolution plan for BSPL illegal and in violation of the Insolvency and Bankruptcy Code (IBC).
• A bench lead by Chief Justice B.R. Gavai and Justice Satish chandra Sharma stated that relevant legal positions were not correctly considered.
• Review petitions prompted the recall, with arguments suggesting factual inaccuracies in previous judgment considerations.
• The matter will now be reassessed afresh on August 7, 2025.
• On May 2, a Bench headed by Justice bela M. Trivedi criticized stakeholders like resolution professionals, Committee of Creditors (CoC), and NCLT for enabling major IBC violations.

Indian Opinion analysis

The Supreme Court’s decision to revisit its earlier ruling reflects concerns over procedural inconsistencies within India’s insolvency framework. This step underscores the judiciary’s commitment to ensuring fair application of laws such as the IBC while addressing criticisms about institutional lapses in handling corporate resolutions. By recalling its earlier judgment, the apex court creates room for reconsideration that could impact both creditor confidence in judicial safeguards and future insolvency proceedings across industries.

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