The apex court rejected a plea by the committee of creditors (CoC) seeking an additional ₹6,100 crore, citing BPSL’s EBITDA during the insolvency period. The court ruled that such claims have no basis under the Insolvency and Bankruptcy Code (IBC).
BPSL, part of the RBI’s original ‘dirty dozen’ referred for insolvency, had been at the centre of a prolonged legal battle. In May 2025, the Supreme Court had scrapped JSW’s plan, citing delays and procedural violations, and directed liquidation of the debt-laden company. However, following review petitions filed by JSW Steel and lenders in June, the matter was heard again.
During the review, banks shifted their stance and demanded the additional payout, while JSW opposed, arguing that EBITDA was not equivalent to profits and that BPSL remained in losses during the insolvency period.
The Supreme Court, after reserving judgment in August, has now restored JSW’s resolution plan.
JSW Steel was represented by senior advocates Neeraj Kishan Kaul and Gopal Jain, along with the legal team from Karanjawala & Co., comprising Nandini Gore (Senior Partner), Tahira Karanjawala (Partner), Swati Bhardwaj, Akarsh Sharma, Manvi Rastogi, Shreyas Maheshwari, Sharanya Ghosh, Pranav Garg, and Mahek Karanjawala, as well as a team from AZB & Partners led by Rajendra Barot, Senior Partner, along with Vivek Shetty, Suharsh Sinha, Sherna Doongaji, and Akhilesh Menezes.
The Committee of Creditors was represented by Tushar Mehta, Ld. Solicitor General of India, assisted by Raunak Dhillon of Cyril Amarchand Mangaldas.
Also Read: JSW Steel shares surge after Supreme Court overturns its own decision on BPSL acquisition
First Published: Sept 26, 2025 10:59 AM IST