Supreme Court to Deliver Verdict on JSW Steel's Controversial BPSL Resolution Plan

The Supreme Court has yet to issue a decision on JSW Steel's Rs 19,700-crore resolution strategy for beleaguered Bhushan Power and Steel Limited (BPSL). The case could have major financial implications for all parties involved.

A special bench with Chief Justice B R Gavai and Justices Satish Chandra Sharma and K Vinod Chandran mulled over arguments from key legal representatives. Solicitor General Tushar Mehta advocated for the creditors' committee, while JSW Steel was represented by senior advocate Neeraj Kishan Kaul. Former promoters were defended by senior advocate Dhruv Mehta. The ruling follows a July 31 decision to re-evaluate a previous directive that pushed for BPSL's liquidation and annulled JSW's strategy.

Central issues include whether earnings during the company's resolution period belong to creditors or the company itself. The creditors are claiming over Rs 6,000 crore, accounting for EBITDA and interest. JSW Steel, which acquired BPSL based on existing conditions, argues the delay in plan implementation stemmed from external factors. Meanwhile, former promoters contest JSW's compliance, claiming the firm's strategy led to significant delays.

(With inputs from agencies.)