The Indian government is currently evaluating its legal options following the Supreme Court’s decision to annul JSW Steel’s acquisition of Bhushan Power and Steel Ltd (BPSL). The Court’s ruling on May 2, 2025, declared the ₹19,350 crore resolution plan “illegal,” citing violations of the Insolvency and Bankruptcy Code (IBC), including delays and procedural lapses .

In response, the Department of Financial Services is consulting with legal experts to determine the next steps. Options under consideration include filing a review petition within 30 days to address potential errors in the judgment. However, legal experts caution that review petitions are typically limited to correcting apparent errors or considering new evidence, and may not lead to a rehearing of the case .

Additionally, the government is reviewing the IBC framework to ensure stricter adherence to processes and timelines. This review may involve examining the role of resolution professionals and the conduct of the Committee of Creditors (CoC) to prevent future violations .

The Supreme Court’s decision has significant implications for the steel industry and the insolvency resolution process in India. JSW Steel is expected to assess its options, including potential legal remedies, in the coming days.

Sources