The Supreme Court has ordered a status quo on the liquidation of Bhushan Power and Steel, following a pending review petition from JSW Steel.
The order means no further action will be taken until the petition is reviewed. This comes after the top court’s judgment on May 2, 2025, which had opened the door to liquidation.
But here’s the catch: JSW Steel, which took over Bhushan Power and Steel in 2019 for nearly ₹20,000 crore, isn’t giving up that easily. They’re preparing a review plea, and the court is giving them a fair chance to file it—within 30 days as per the rules.
Why does this matter?
For thousands of workers, suppliers, and investors linked to Bhushan Power and Steel, this is a big deal. Liquidation means starting over. For JSW Steel, it risks years of effort and ₹20,000 crore.
For employees, it means uncertainty. For India Inc., it could shake investor confidence in the country’s insolvency process.
In simple words: a wrong turn here could turn a major industrial revival story into a cautionary tale.
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Backstory: From Acquisition to Uncertainty
JSW Steel had acquired Bhushan Power and Steel after a long insolvency battle. The National Company Law Tribunal (NCLT) approved its resolution plan in 2019. But the deal was finalized only in March 2021.
Since then, the company has tried to turn things around. In the March 2025 quarter, Bhushan Power and Steel produced 0.98 million tonnes of crude steel and sold 0.94 million tonnes. Revenue touched ₹5,635 crore. Profit after tax stood at ₹42 crore.
EBITDA for the quarter was ₹570 crore—up 5% from the previous quarter. That’s progress, not collapse.
So why liquidation now? Former promoter Sanjay Singhal approached the NCLT seeking it, citing the Supreme Court’s May 2 order. The irony? A promoter once removed for mismanagement is now pushing to shut it down.
The Bigger Picture
JSW’s review petition is more than a corporate tussle. It’s a test of India’s bankruptcy system—should it protect genuine turnarounds or go strictly by legal technicalities?
For now, the Supreme Court is doing what courts should: pausing to think. And that pause might just save a steel plant—and the people depending on it.
As of now, we wait. But one thing’s clear—Bhushan Power and Steel isn’t going down without a fight. And maybe, just maybe, justice needs time to get it right.
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