The Supreme Court has cleared the path for JSW Steel to acquire Bhushan Power and Steel Ltd (BPSL) in a Rs 20,000-crore deal, reversing its earlier order that had directed the liquidation of the bankrupt company.

A bench led by Chief Justice of India BR Gavai on Friday approved JSW Steel’s Rs 19,700-crore resolution plan, saying the company had met all the parameters required as a successful resolution applicant under the Insolvency and Bankruptcy Code (IBC).

The Chief Justice noted that overturning the consistent views of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), both of which had upheld the resolution plan, would have created serious consequences. “Reversing concurrent decisions by the NCLT and the NCLAT will result in a disaster,” CJI Gavai observed in court.

The acquisition has been at the centre of a long legal battle. While the NCLT and the NCLAT had both approved JSW Steel’s plan for BPSL, a two-judge division bench of the Supreme Court had earlier refused to allow it. That bench had directed that the company be liquidated instead of taken over, citing concerns over the eligibility of the plan.

Friday’s ruling by the CJI-led bench reverses that earlier order, effectively paving the way for the takeover. The decision brings clarity to one of the most high-profile cases under the IBC framework.

With the Supreme Court’s latest ruling, decks are now cleared for JSW Steel to go ahead with its Rs 20,000-crore acquisition of BPSL. The deal is expected to help JSW Steel expand its presence in eastern India and boost its overall production capacity.

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