Supreme Verdict: JSW Steel's Triumphant Acquisition of Bhushan Power & Steel

The Supreme Court has endorsed JSW Steel's acquisition of Bhushan Power and Steel, approving a comprehensive Rs 19,700-crore resolution plan. This decision concludes a protracted eight-year legal dispute, affirming the February 2020 judgment by the National Company Law Appellate Tribunal (NCLAT) and granting JSW immunity from enforcement proceedings.

Chief Justice B R Gavai led the bench that dismissed challenges from former promoters and creditors, highlighting a significant precedent in Indian insolvency law. The ruling criticized stakeholders' conduct during the resolution process, including oversight bodies like the Committee of Creditors (CoC) and the National Company Law Tribunal, for violating insolvency guidelines.

Despite initial setbacks and allegations, the resolution plan by JSW transformed Bhushan Power and Steel from a deficit-stricken entity to a profitable venture, aligning with the Insolvency and Bankruptcy Code's intent to keep corporate entities operational. The court's decision underscores the resolution's integrity, preventing future litigations that could undermine business turnaround efforts.

(With inputs from agencies.)