By Suresh P Iyengar
Copyright thehindubusinessline
The Supreme Court judgement on the review petition filed in JSW Steel acquisition of Bhushan Power and Steel has not enhanced India Inc’s confidence. However it has also clarified that earnings made in circumstances not defined under the resolution plan will remain with the corporate debtor.
The Supreme Court has upheld the review petition filed by the lenders and JSW Steel in the Bhushan Power and Steel acquisition and overturned its own verdict.
Earlier, the Apex Court rejected the ₹19,7000 crore resolution application of JSW Steel citing discrepancy in the way the deal was approved by NCLT and executed by JSW Steel.
Raian Karanjawala, Managing Partner, Karanjawala & Co said the SC verdict reaffirms the faith of the business community and the public in general that our judiciary is always ready to correct its own judgment if it feels it has committed an error.
The SC’s review of its own decision is important as it reaffirms the faith of the business community and future resolution applicants in the IBC as a reliable method of rehabilitating companies, he said.
In circumstances where it had not been expressly dealt with in the Resolution Plan or the Request for Resolution Plan, the Apex court has clarified that the EBIDTA would not be distributed to the creditors and would remain with the corporate debtor, he said
Akshat Khetan, Founder AU Corporate Advisory and Legal Services said the verdict reaffirms the sanctity of commercial wisdom and provides much needed closure to a drawn out insolvency saga, securing the interests of creditors, employees and investors alike.
At the same time, it reminds all stakeholders that in India’s evolving insolvency jurisprudence, procedural fidelity is as critical as commercial viability, he added.
The ruling restores confidence in the IBC framework but equally cautions resolution applicants to tread with rigour, diligence and absolute compliance, said Khetan.
Moksha Kalyanram Abhiramula, Managing Partner – La Mintage Legal LLP said the judgement confirmed that the delays in the completion of the plan cannot be attributed to either JSW Steel or the CoC, thereby reinforcing their good faith.
The Court clarified that all claims must be included and finalised in the resolution plan process, while claims that are submitted after approval, or that are unrelated are inadmissible, he said.
Sonam Chandwani, Managing Partner KS Legal & Associates said the Court verdict is more than a correction of a past oversight as it reaffirms that resolution applicants cannot be saddled with legacy liabilities alien to the insolvency framework.
By ring fencing successful bidders from investigative dragnet or punitive claims arising from pre-CIRP conduct, the Court has strengthened commercial certainty in IBC transactions, she said.
Published on September 26, 2025
