Published on : 03 Oct 2025, 1:26 pm 4 min read

The recent discussion by the Supreme Court on the protracted corporate insolvency of Bhushan Power and Steel Ltd (BPSL) in Kalyani Transco v. Bhushan Power and Steel Ltd. & Ors made the headlines as the Court signed off on JSW's resolution plan for the company.

However, there is a legal question in the body of the judgment which could have far greater implications for the future of India's insolvency regime: what happens to Earnings Before Interest Tax Depreciation and Amortization (EBITDA), made from the time the corporate debtor is kept as a going concern?

The Court did not adjudicate upon the treatment of EBITDA created while BPSL was maintained as a going concern. In doing so, an area of continued uncertainty with respect to

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