The Supreme Court of India has given the green light to JSW Steel Ltd.’s acquisition of Bhushan Power and Steel Ltd., overturning its earlier ruling that had blocked the ₹19,700-crore transaction.
A bench of three judges led by Chief Justice B.R. Gavai upheld the takeover under India’s bankruptcy resolution framework and dismissed the lenders’ request for extra payments from JSW Steel. In its verdict, the court observed that reopening settled claims would “amount to committing violence on the provisions of the law.”
The judges further noted that delays in completing the acquisition were not the fault of JSW Steel but rather the result of ongoing litigation. Lenders had argued they should be compensated for profits earned by Bhushan Power during this period, a claim the court rejected. The ruling clears a major hurdle for billionaire Sajjan Jindal’s company, which has treated Bhushan Power as a subsidiary since 2021. Following the acquisition, the unit’s annual crude steel capacity has expanded by nearly 65 percent.
This outcome follows months of judicial back-and-forth. In May, the Supreme Court had struck down the deal, ruling it did not comply with India’s insolvency laws and directing liquidation of Bhushan Power. However, in July, a two-judge bench led by Gavai recalled that order, saying the matter required a fresh hearing.
JSW and several lenders had pressed for a review of the earlier decision, invoking provisions that allow the Supreme Court to reconsider its judgements only under limited circumstances such as errors apparent on the face of the record. The latest ruling brings clarity and closure to one of the most closely watched insolvency cases in India.
