The Supreme Court’s recent judgment on the Bhushan Power and Steel Ltd insolvency case has delivered a big blow to India’s bankruptcy regime. By striking down JSW Steel’s resolution plan, years after its implementation, the Court has reopened old wounds and introduced a new element of unpredictability into the already delicate Insolvency and Bankruptcy Code ecosystem.This is not merely a setback for JSW Steel or its lenders. It’s a moment of reckoning for India’s entire stressed asset ecosystem. The ruling raises uncomfortable questions: Whose rights were violated? Were procedural lapses severe enough to warrant unwinding an already executed transaction? And what precedent does this now set for ongoing and future resolutions under the IBC?
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