New Delhi, Sept. 28 -- Just over three months after nearly losing control of its Rs.19,700 crore bet on Bhushan Power and Steel Ltd (BPSL), JSW Steel is back in the saddle.

In a dramatic reversal, the Supreme Court on 26 September restored JSW Steel's rights and upheld its resolution plan, undoing its own 2 May order that had quashed the five-year-old plan and directed liquidation. The new ruling not only secures JSW's hold on one of its most prized acquisitions but also restores confidence in India's Insolvency and Bankruptcy Code (IBC), which had been shaken by the earlier verdict.

The May judgment had rattled the insolvency ecosystem by putting at risk over Rs.34,000 crore in bank debt and Rs.19,350 crore already paid by JSW Steel. T...