In a significant legal development, the Hon'ble Supreme Court of India has rejected the Resolution Plan submitted by JSW Steel Limited for Bhushan Power and Steel. The ruling was pronounced on May 2, 2025, and comes as a major setback for the steel giant. The Resolution Plan, which had been approved earlier by the National Company Law Appellate Tribunal (NCLAT), was set aside by the Supreme Court on certain grounds. While the precise reasons for the rejection are not yet clear, JSW Steel has stated that they have yet to receive the formal copy of the judgment. Once the formal order is received, the company intends to review the details of the ruling with the assistance of its legal advisors.

The rejection of the resolution plan by the Supreme Court represents a crucial turning point in the long-standing insolvency proceedings of Bhushan Power and Steel. This case has been a significant matter in the corporate world, especially considering the involvement of JSW Steel, one of India's largest steel manufacturers. The resolution plan, which was a part of the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), had initially received approval from the NCLAT. However, the Supreme Court’s decision has now cast uncertainty on the future course of action.

JSW Steel has indicated that once they receive the formal judgment order, they will review the reasons behind the rejection with their legal team to assess its implications. This will allow the company to determine its next steps, which could involve revising the plan or pursuing alternative legal measures. Given the high-profile nature of the case, JSW Steel has assured its stakeholders that it will keep the stock exchanges informed of any developments as per the Securities and Exchange Board of India (SEBI) regulations. This is a vital move in ensuring that the company remains compliant with all listing obligations and continues to maintain transparency with its investors.

The rejection of the Resolution Plan by the Supreme Court marks an important chapter in the corporate insolvency proceedings for Bhushan Power and Steel, which has been in the insolvency resolution process for quite some time. The case has attracted significant attention due to the large-scale implications for the steel industry and the significant role played by JSW Steel in the resolution process. The outcome of the case could have far-reaching effects on the Indian steel market and the broader insolvency resolution framework under the Insolvency and Bankruptcy Code (IBC).

While the full impact of the ruling is yet to be understood, it is clear that JSW Steel is committed to taking the necessary steps to address the Supreme Court's rejection and continue with its corporate restructuring efforts. The company’s management has emphasized that the legal team will thoroughly analyze the judgment to explore all potential avenues for addressing the decision, which may include approaching the Court for clarification or revision.

For now, the company’s focus remains on understanding the full legal implications of the judgment and formulating an appropriate response. As JSW Steel has stated, further updates will be provided once the company has had a chance to fully assess the situation in collaboration with its legal advisors.

This development highlights the ongoing challenges within the Indian corporate insolvency and restructuring landscape, where the outcome of such high-profile cases can significantly influence the future of the companies involved. The Bhushan Power and Steel insolvency case, which has already been under scrutiny for some time, will likely continue to evolve in the coming months.

JSW Steel’s legal team will play a pivotal role in determining the future course of action, which could range from re-submitting a revised plan to engaging in further legal proceedings. Regardless of the outcome, JSW Steel has committed to keeping its stakeholders informed and maintaining transparency as required under the Listing Obligations and Disclosure Requirements (LODR) regulations of SEBI.

This event serves as a reminder of the complexities involved in corporate restructuring and insolvency resolution processes in India, as companies like JSW Steel navigate through legal and regulatory frameworks. Investors and market participants will be closely monitoring developments, as they could have significant ramifications for the steel sector and corporate governance standards in the country.

The rejection of the Bhushan Power and Steel Resolution Plan by the Supreme Court adds another layer of complexity to this already intricate legal matter, and JSW Steel’s next steps will be closely watched by industry experts and investors alike.

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