In a big relief for JSW Steel, the Supreme Court on Monday directed for status quo on National Company Law Tribunal (NCLT) proceedings on liquidation of Bhushan Power and Steel Ltd (BPSL), stated a report by CNBC TV18. The move followed the SC’s 2 May verdict, which quashed JSW Steel’s Rs 19,300 crore resolution plan for BPSL and directed the company’s liquidation.
A bench of Justice BV Nagarathna and Justice Satish Sharma passed the order considering the fact that JSW’s limitation period for filing a review against the Supreme Court’s judgment is not yet over. According to the Supreme Court rules, review petitions are to be filed in 30 days.
Former promoter of BPSL, Sanjay Singhal had moved NCLT seeking liquidation, whose earlier plea led to the Supreme Court’s ruling invalidating the resolution plan.
Per reports, JSW Steel has asked the court to defer the liquidation process by 60 days. The company has also issued demand notices to banks, seeking refunds of payments made under the now-quashed resolution plan.
Post this, shares of JSW Steel went up by 2.29 per cent at 1:40 pm to a trading price of Rs 1,031.55.
The latest verdict is significant for JSW Steel, which had acquired BPSL through the insolvency resolution process over five years ago in September 2019 for a little less than Rs 20,000 crore. It has since invested heavily in reviving and operating the company. The acquisition was completed in March 2021.
On May 23, JSW Steel had released its fiscal fourth quarter earnings with net profit at Rs 1,503 crore, posting a growth of around 16 per cent on-year from Rs 1,299 crore reported during the corresponding quarter of last year, amid falling cost and improving margins.
The company did not make any provisions related to the BPSL judgment in its balance sheet. It had said that the recoverable amount is sufficient to cover the carrying value of assets under BPSL, valued at Rs 14,091 crore as on March 31, 2025.