JSW Steel Limited, one of India’s leading steel producers, has announced a major legal development regarding its long-standing corporate insolvency resolution case involving Bhushan Power and Steel Limited (BPSL). As per the company’s official filing dated 1 August 2025, made to both BSE and NSE, the Hon’ble Supreme Court of India has accepted its review petition and recalled its previous judgment that was delivered on 2 May 2025.

This legal reversal was communicated through a Regulation 30 disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company informed that while the order allowing the review has been passed on 31 July 2025, the official written order is yet to be uploaded on the Supreme Court’s website. This disclosure is being made in good faith and subject to the final published version of the Review Order.

Background: The Original Judgment

On 2 May 2025, the Supreme Court had delivered a judgment in a matter involving the resolution plan of Bhushan Power and Steel Limited, a company that had undergone insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). JSW Steel, which had previously emerged as the successful resolution applicant for BPSL, was significantly impacted by this judgment.

Following this decision, JSW Steel filed a review petition challenging certain aspects of the May 2025 ruling, citing concerns over implications to its acquisition plan and other associated legal and financial implications. The review petition went through due process and culminated in the Hon’ble Supreme Court allowing the review and recalling the earlier verdict.

Latest Development: Review Petition Accepted

As disclosed on 1 August 2025, the Supreme Court’s order dated 31 July 2025 has resulted in a reversal of its own earlier judgment, an uncommon but significant legal event. The review order effectively reopens the matter surrounding the Bhushan Power resolution, giving JSW Steel a renewed opportunity to protect and assert its legal and commercial interests in the acquisition.

The text of the Review Order is awaited, and until it is made public via the Supreme Court's website, the company has clarified that its disclosure remains provisional and subject to the contents of the final order.

Regulatory Compliance and Disclosures

In its official communication to the exchanges, JSW Steel has listed earlier disclosure dates regarding the case – 2 May, 29 May, 25 June, and 30 July 2025 – all of which pertain to the original judgment and related developments. The latest communication ensures that investors, stakeholders, and regulators are kept well informed in accordance with SEBI’s disclosure norms.

The company’s filing was signed by Mr. Manoj Prasad Singh, who is acting as Company Secretary in the interim capacity, confirming that the notification complies with the Regulation 30 requirements under SEBI guidelines.

Implications for JSW Steel and BPSL

This turn of events offers a major reprieve for JSW Steel, which had faced legal and financial uncertainty following the May verdict. Recalling of the judgment means that earlier legal impediments to the resolution plan might no longer be in effect—pending the outcome of subsequent hearings or a fresh ruling.

BPSL, which has been a strategic acquisition target for JSW Steel, represents significant capacity and operational synergy benefits. The acquisition was part of JSW Steel’s broader effort to expand its footprint in the Indian and global steel markets, as well as to strengthen backward integration across its supply chain.

With the judicial barrier now temporarily lifted, JSW Steel may move forward with greater clarity, although further legal scrutiny is likely as the case evolves.

Market Reaction and Investor Confidence

While the final Review Order is awaited, the Supreme Court’s decision to accept the review petition already represents a significant legal victory for JSW Steel. It also sends a strong signal to investors about the company’s legal resilience and its ability to navigate complex judicial and regulatory landscapes.

Market participants will be closely monitoring the formal uploading of the Review Order and any follow-up announcements from the company. The recall of the May 2025 judgment could impact valuation, investor sentiment, and corporate strategy concerning BPSL, especially if the resolution plan is eventually reinstated with fewer legal challenges.

Conclusion

JSW Steel’s disclosure about the Supreme Court’s acceptance of its review petition and recall of the earlier judgment in the Bhushan Power and Steel Limited case marks a major step forward in a saga that has seen significant legal twists.

The development not only improves the prospects for JSW Steel’s acquisition of BPSL but also highlights the importance of judicial reviews in cases involving large corporate resolution plans. As of now, all eyes will be on the detailed Review Order, which will provide clarity on the future course of this important transaction in India’s steel sector.

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