JSW Steel , one of India's leading steel manufacturers, has received a significant update in its ongoing legal battle related to the Bhushan Power and Steel Limited (BPSL) resolution plan. The Supreme Court has decided to allow an open court hearing of JSW Steel's review petition, marking a new development in this high-profile case.

Background

JSW Steel had previously acquired Bhushan Power and Steel Limited through the corporate insolvency resolution process. However, a Supreme Court judgment led to complications in the acquisition, prompting JSW Steel to file a review petition.

Latest Development

In a disclosure to the stock exchanges, JSW Steel informed that the Supreme Court has:

1. Issued a notice on the review petition filed by JSW Steel.
2. Allowed applications for listing the review petition in open court.
3. Granted permission for oral hearings of the review petition.

This decision by the apex court is significant as it allows JSW Steel to present its case in an open court setting, potentially impacting the outcome of the BPSL acquisition.

Implications

The Supreme Court's decision to allow an open court hearing suggests that the case merits further examination. This development could be seen as a positive step for JSW Steel, as it provides an opportunity for the company to present its arguments more comprehensively before the court.

Company's Stance

JSW Steel has been consistently updating the stock exchanges about the developments in this case, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's proactive communication reflects its commitment to transparency with its shareholders and the market at large.

Way Forward

As the case progresses, all eyes will be on the Supreme Court's open hearing. The outcome of this review petition could have significant implications not only for JSW Steel and Bhushan Power and Steel Limited but also for India's insolvency and bankruptcy landscape.

Investors and industry observers will be keenly watching for further developments in this case, given its potential impact on JSW Steel's business operations and the broader steel sector in India.

JSW Steel , one of India's leading steel producers, has received a significant development in its ongoing legal battle over the acquisition of Bhushan Power and Steel Limited (BPSL). The Supreme Court has agreed to hear JSW Steel's review petition in open court, challenging the earlier decision to strike down its ₹19,700.00 crore resolution plan for BPSL.

Key Developments

• The Supreme Court has issued a notice and scheduled the hearing for July 31.
• This review comes after the court's May decision to strike down the resolution plan approved by the Committee of Creditors.
• The earlier ruling had deemed the plan a violation of the Insolvency and Bankruptcy Code (IBC) and ordered BPSL's liquidation.

Background of the Case

JSW Steel's journey to acquire BPSL has been marked by several legal hurdles:

• In 2019, JSW Steel was declared the successful resolution applicant for BPSL.
• The National Company Law Tribunal (NCLT) approved the resolution plan, which was later upheld by the National Company Law Appellate Tribunal (NCLAT).
• The Enforcement Directorate (ED) initially objected to the plan but later withdrew its challenge.
• The ED returned assets worth ₹4,025.00 crore to JSW Steel to facilitate the acquisition.

Supreme Court's Earlier Ruling

The Supreme Court's decision in May to strike down the resolution plan was based on two main factors:

1. JSW Steel's failure to implement the resolution plan for years.
2. Non-compliance with key post-approval obligations under the IBC.

This ruling had put JSW Steel's acquisition of BPSL in jeopardy and ordered the liquidation of BPSL.

Implications and Next Steps

The upcoming open court hearing represents a crucial juncture for JSW Steel and the broader steel industry. The outcome of this review petition could have significant implications for:

• The future of BPSL and its stakeholders
• The interpretation and application of the Insolvency and Bankruptcy Code
• The resolution process for stressed assets in India's steel sector

As the July 31 hearing approaches, all eyes will be on the Supreme Court's deliberations and the potential impact on JSW Steel's plans for BPSL. The decision could set an important precedent for similar cases in the future, affecting how resolution plans are implemented and monitored under the IBC framework.

Stakeholders in the steel industry and the broader business community will be keenly watching this case, as it could influence future mergers and acquisitions in the sector, especially those involving stressed assets.