India, May 27 -- The Supreme Court on Monday stopped liquidation proceedings of Bhushan Power and Steel Ltd , weeks after it scrapped JSW Steel's deal to acquire the company.

The court's order came after JSW Steel and other creditors told the court that they plan to file a review petition against the May 2 order, which rejected JSW's acquisition of Bhushan Power & Steel and ordered that the company be liquidated. That order created a flutter in corporate and banking circles as it came six years after JSW's deal was approved. The acquisition under India's Insolvency and Bankruptcy Code, introduced in 2016, was often held up as an example of constructive resolution.

The liquidation was to happen before the National Company Law Tribunal (N...