Informist, Tuesday, Jul. 29, 2025

NEW DELHI – The Supreme Court on Tuesday issued a notice to Bhushan Power & Steel Ltd's creditor Kalyani Transco on a review petition filed by JSW Steel Ltd. and Bhushan Power's lenders. "Applications for listing review petitions in open court and applications for oral hearing are allowed. Issue notice. List these matters on Jul. 31, at 1500 IST", said a bench of Chief Justice B.R. Gavai and Justice Satish Chandra Sharma.

JSW Steel and lenders of Bhushan Power, including State Bank of India and Punjab National Bank, have sought review of the apex court's May 2 verdict ordering liquidation of Bhushan Power. Further, JSW Steel had asked for an open court hearing in the Supreme Court against the verdict that had set aside the company's resolution plan for debt-ridden Bhushan Power and Steel. In addition, JSW Steel urged the top court to stay its order that had directed liquidation of Bhushan Power.

JSW Steel argued that its INR-193.50-billion resolution plan was implemented in 2021 to the benefit of all stakeholders and that the liquidation of Bhushan Power will have adverse ramifications on the debt-ridden company that had been operating as a viable and a going concern since its acquisition.

It has transformed Bhushan Power's financial health and now its operational capacity has almost doubled, sales have increased by almost three times to INR 259.73 billion in 2024-25 (Apr-Mar) from INR 87.01 billion in FY17 and exports have resumed with an annual average of INR 29.76 billion in the last four years, said JSW Steel. In addition, Bhushan Power has contributed INR 169.00 billion in taxes to the exchequer and a capital investment of INR 57.88 billion has been made by the petitioner in the debt-ridden company since 2021, said JSW Steel.

Kalyani Transco had challenged JSW Steel's resolution plan for Bhushan Power and had said that the debt-ridden company owed a sum of INR 52.16 million to them on account of transportation of solid waste. Kalyani Transco had alleged that meaningful participation was denied to operational creditors since complete copies of relevant documents and resolution plans were never shared with them.

Kalyani Transo had also alleged that JSW Steel was a related party of Bhushan Power and it was barred by section 29A of the Insolvency and Bankruptcy Code, 2016, from submitting a resolution plan.

In its order dated May 2, the Supreme Court had ruled that the resolution plan for Bhushan Power and Steel was illegal and should not have been accepted by the committee of creditors. The court directed liquidation of the company in its order.

On Tuesday, shares of JSW Steel closed 0.6% higher at INR 1,034.90 on the National Stock Exchange, the shares of State Bank of India ended 0.3% higher at INR 799.20 and the shares of Punjab National Bank ended 2.3% higher at INR 109.29. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

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