In a relief for JSW Steel Ltd, the Supreme Court on Tuesday agreed to hear a review petition in open court against its 2 May verdict quashing the company’s ₹19,350 crore acquisition of Bhushan Power and Steel Ltd and ordering BPSL’s liquidation.

A bench led by Chief Justice B.R. Gavai and Justice Satish Chandra Sharma passed the order during a closed-chamber review hearing, allowing the matter to be heard in open court and issuing notice on the plea.

“Application(s) for listing review petition(s) in open Court and application for oral hearing are allowed. Issue notice. List these matters on 31.07.2025 at 03:00 p.m.,” the order stated.

This development comes as a relief for JSW Steel, providing it one final legal opportunity to retain control of BPSL, which it acquired in March 2021 through the corporate insolvency resolution process. 

The court’s decision also offers a breather to lenders such as State Bank of India and Punjab National Bank, who filed separate review petitions in support of JSW Steel.

The May ruling not only cancelled the acquisition but also made banks return ₹19,350 crore paid by JSW, putting nearly ₹34,000 crore of total bank exposure at risk.

“While it’s still too early to predict the final outcome, the acceptance of the review petition shifts the narrative from JSW Steel having definitively lost BPSL to a more hopeful outlook. It’s certainly a step in the right direction,” said Suman Kumar, vice president–metals and mining, Dolat Capital.

JSW Steel did not immediately reply to emailed queries.

In its plea, JSW Steel argued that it had significantly improved BPSL’s operations since the acquisition. BPSL’s production capacity has nearly doubled—from 2.3 million tonnes per annum in 2017 to 4.5 mtpa in 2025, JSW Steel said. Revenue rose from ₹8,701 crore in FY17 to ₹25,973 crore in FY25, and exports averaged ₹2,976 crore annually over the last four years, it added.

Both JSW Steel and lenders have cautioned that liquidation would harm BPSL, which has been running as a profitable and viable business under the approved resolution plan. The Supreme Court had earlier granted interim relief on 26 May, ordering status quo on liquidation to allow JSW Steel to file the review petition.

The 2 May ruling was based on petitions filed by dissenting financial creditors, including Kalyani Group’s Torsteel and former BPSL promoter Sanjay Singal, who challenged delays in the resolution plan’s implementation. 

The May ruling found that the acquisition violated provisions of the Insolvency and Bankruptcy Code (IBC), particularly regarding adherence to strict timelines.

BPSL was among the Reserve Bank of India’s original list of 12 large defaulters flagged in 2017 for resolution under the IBC. At the time, the company owed over ₹47,000 crore to its lenders.