Supreme Court to Reconsider Quashing of JSW Steel’s $2.3 Billion Bhushan Power Takeover
In a significant development, India’s Supreme Court announced on Thursday that it will revisit its earlier decision that quashed JSW Steel’s $2.3 billion acquisition of Bhushan Power and Steel. The apex court observed that the previous ruling, issued in May, did not adequately consider legal precedents, prompting a review of one of India’s most high-profile insolvency resolutions.
The initial verdict had nullified the takeover six years after its approval, citing “a spectrum of lacunas and flaws” in the process, and even ordered the liquidation of Bhushan Power. Banks were instructed to return funds recovered during the deal, sending shockwaves through the market and raising concerns among investors in distressed assets under India’s 2016 bankruptcy reforms. However, the court later paused the liquidation proceedings to allow JSW Steel to file a review plea.
On Thursday, the bench stated that the judgment needed to be “recalled” for fresh consideration, signaling potential relief for JSW Steel. The Supreme Court will hear the case again on August 7, a crucial date for both the company and stakeholders in India’s evolving insolvency landscape.
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