Overview

• The Supreme Court ordered a status quo on Bhushan Power and Steel Ltd’s liquidation, halting NCLT action until JSW Steel’s review petition is decided.
• On May 2 a different bench set aside JSW’s ₹19,700 crore resolution plan as illegal under the Insolvency and Bankruptcy Code and directed BPSL’s liquidation.
• JSW Steel has until June 2, 2025 to file its review petition to challenge the apex court’s rejection of its acquisition plan.
• The court rebuked the resolution professional, Committee of Creditors and NCLT for approving a plan in what it termed a “flagrant violation” of IBC rules.
• The interim hold leaves public sector banks, foreign lenders and around 20,000 BPSL employees in limbo and highlights uncertainty in India’s insolvency framework.