Supreme Court Upholds JSW Steel's Resolution in Landmark Insolvency Ruling

The Supreme Court on Friday endorsed JSW Steel's Rs 19,700-crore resolution plan for Bhushan Power and Steel Limited (BPSL), emphasizing that liquidation should be the final option under the Insolvency and Bankruptcy Code (IBC).

A bench led by Chief Justice B R Gavai stressed that interfering with the Committee of Creditors' (CoC) commercial decisions is typically "non-justiciable," arguing that judicial intervention might contravene the IBC's core objectives.

This ruling, which also sustained the National Company Law Appellate Tribunal's verdict from February 17, 2020, grants JSW Steel immunity from prosecution by the Enforcement Directorate (ED), underscoring the CoC's critical role in ongoing resolution proceedings.

(With inputs from agencies.)