Overview

• Chief Justice B. R. Gavai, with Justices Satish Chandra Sharma and K. Vinod Chandran, upheld JSW Steel’s resolution plan and affirmed the NCLAT’s February 2020 approval.
• The bench reversed the May 2 order that had directed liquidation, after recalling it on July 31 and rehearing the case on August 11 due to errors in applying IBC principles and reliance on inaccurate facts.
• Objections from former promoters and certain creditors were dismissed, with the court reiterating that courts should not reopen issues outside an approved plan or second‑guess the CoC’s commercial judgment.
• Lenders’ supplementary claims of about ₹6,155 crore—covering CIRP‑period EBITDA and delay interest—were rejected, and the court treated the plan’s compulsorily convertible debentures as equity under its terms.
• The judges noted JSW turned BPSL from loss‑making to profitable and preserved jobs, creditors keep the ₹19,350 crore already paid, and JSW Steel shares rose modestly after the verdict.