IBC Jurisprudence Reaffirmed: Supreme Court Saves JSW Resolution Plan

The Supreme Court’s landmark judgment of 26 September 2025 in the Bhushan Power and Steel Limited (BPSL) case marks a critical turning point in the evolution of insolvency law in India. While restoring the JSW Steel resolution plan, the Court not only restored certainty to one of the largest corporate insolvencies under the Insolvency and Bankruptcy Code but also reaffirmed the core principles that have been painstakingly developed over the past eight years.

This update captures the essence of the Supreme Court’s 26 September 2025 judgment and its findings on the most critical issues that had clouded the resolution process. It examines how the Court dealt with EBITDA distribution, treatment of contingent claims, and the primacy of commercial wisdom of the Committee of Creditors. It highlights the reaffirmation of the clean slate principle, the Court’s rejection of the “hydra head” of undecided claims post-approval, and its analysis of the limited grounds of appeal available under the IBC. The write-up also reflects on the Court’s emphasis on the conduct of promoters during the Corporate Insolvency Resolution Process, making it clear that dilatory tactics cannot be rewarded.

Read the detailed update here