JSW Steel is preparing to file a review petition before the Supreme Court. Last month, his solution plan for Bhushan Power and Steel Limited was rejected by the apex court. The 2019 order of the National Company Law Tribunal is expected to be cited by the steel manufacturer, in which Form H was accepted by the resolution professional. This proves the eligibility of JSW under the Insolvency Code (IBC). Sources said that banks and resolution professionals will also file separate review petitions.
The apex court termed JSW’s Samadhan Yojana as illegal, saying that the solutions failed to file professional form H and there was also a lack of advance equity investment from JSW Steel. The decision has put a large bankrupt solution in the vortex of uncertainty, which was once considered successful under the country’s bankrupt law.
According to a legal source, JSW’s legal team is likely to argue that funding funding system based on compulsory convertible preference shares was actually equity investment. Review petitions are expected to be filed by the company, its creditors, solutions professional and government. Their purpose is to tell errors in the decision. JSW Steel refused to comment about this.
Senior advocate Nalin Kohli said broadly, the company not only came back on track but has also expanded its capacity and doubled its employees. This has fulfilled the purpose of IBC. He said that BSPL was among the 12 companies that were marked by the Reserve Bank of India in 2017 for a fast-track bankruptcy solution and the latest decision has reopened the matter after four years of stability.
Sanjay Singhal, former promoter of Bhushan Power, has already filed an application in the New Delhi bench of NCLT, demanding the order of the Supreme Court and the liquidation of the company. The move is at risk of JSW’s acquisition of Rs 19,700 crore and impact on subsequent investments, causing BPSL to make steel capacity from 25 million tonnes annually to 45 million tonnes annually.
The Supreme Court found JSW Steel disqualified under Section 29A of the IBC due to an undeclared joint venture with a unit associated with former BPSL promoters. He ruled that the Samadhan professional failed his legal duties, including the Code to check the eligibility.
First Published – May 11, 2025 | 10:57 pm IST
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