Informist, Monday, Aug. 11, 2025

NEW DELHI – JSW Steel Ltd. Monday argued in the Supreme Court against the lenders of Bhushan Power & Steel Ltd. seeking INR 35.69 billion of earnings before interest, taxes, depreciation, and amortisation generated during the insolvency process. JSW Steel said the lenders have changed their stand, as the committee of creditors had not earlier demanded Bhushan Power's EBITDA generated during insolvency.

JSW Steel argued that if the resolution plan of Bhushan Power and the law do not contain EBITDA, then the lenders cannot force them to share it. "Today, the committee of creditors, not having challenged the National Company Law Appellate Tribunal's decision on this issue, is taking a categorical stand in law. Why did they raise it here? When we bid for the company, it means I will take all the losses and profit with it," said JSW Steel.

Further, JSW Steel contested the lenders' stand to seek INR 25 billion interest towards the delay in implementing the resolution plan for Bhushan Power. JSW Steel said the delay in plan implementation for Bhushan Power was not attributable to them. JSW Steel said that the two-year delay was caused entirely by the Directorate of Enforcement's provisional attachment of Bhushan Power's assets, lifted only on Dec. 11.

The Supreme Court had last month recalled its May 2 verdict rejecting JSW Steel's INR 193.50-billion resolution plan for Bhushan Power and directing the latter's liquidation. The bench led by Chief Justice B.R. Gavai allowed the review pleas filed by JSW Steel and Bhushan Power's lenders, including State Bank of India and Punjab National Bank. Thereafter, the apex court started hearing afresh the pleas by operational creditor Kalyani Transco, former promoter Sanjay Singhal and others challenging JSW Steel's resolution plan for the debt-ridden company. On Monday, the apex court reserved its verdict on pleas by Kalyani Transco, Singhal and others.

On Aug. 7, the lenders of Bhushan Power said that they should be paid interest by JSW Steel for the delay in implementation of the resolution plan. The lenders also argued that EBITDA generated during the insolvency process must flow to the creditors.

The implementation of the Bhushan Power resolution plan by JSW Steel was significantly delayed, with the payments to financial creditors delayed by 540 days and operational creditors by over 900 days beyond the initially approved timeline.

The National Company Law Tribunal had started insolvency proceedings against Bhushan Power on a petition by Punjab National Bank in 2017 and approved the resolution plan submitted by JSW Steel in 2019.

In its May 2 order, the Supreme Court had termed JSW Steel's resolution plan as illegal. The apex court said JSW Steel's plan should not have been accepted by the committee of creditors of the debt-ridden company and directed the company's liquidation.

On Monday, shares of JSW Steel ended 0.3% higher at INR 1,052.70 on the National Stock Exchange. Shares of Punjab National Bank ended 2.5% higher at INR 106.54 and those of State Bank of India ended 2.4% higher at INR 823.45. End

Reported by Surya Tripathi

Edited by Saji George Titus

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