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The National Company Law Appellate Tribunal (NCLAT) has refused to grant an interim stay on the approved INR 14,535 crore resolution plan submitted by Adani Enterprises for debt-laden Jaiprakash Associates Ltd (JAL). The order comes in response to a plea filed by Vedanta Group challenging the National Company Law Tribunal's (NCLT) approval of the bid. While allowing implementation of the resolution plan to proceed, the appellate tribunal has clarified that the outcome will remain subject to the final ruling in the appeal. The tribunal has sought responses from the Committee of Creditors (CoC) and scheduled the next hearing for early next month, keeping the insolvency resolution process active amid ongoing legal contestation.
The National Company Law Appellate Tribunal (NCLAT) has declined to grant an interim stay on the INR 14,535 crore resolution plan submitted by Adani Enterprises Ltd for Jaiprakash Associates Ltd (JAL), allowing the insolvency resolution process to proceed despite a legal challenge from Vedanta Group. The order was passed in the past week by a two-member bench, which directed the Committee of Creditors (CoC) to file its response within a week and listed the matter for further hearing early next month. Advertisement
The appeal before the tribunal arises from Vedanta Group's challenge to the approval granted by the National Company Law Tribunal (NCLT), Allahabad bench, which had cleared Adani Enterprises resolution plan for the debt-laden infrastructure company. Vedanta, which had also participated in the bidding process, has contested the manner in which the resolution plan was evaluated and approved by lenders.
While declining to halt the implementation, the appellate tribunal indicated that the resolution process may continue but would remain subject to the final outcome of the appeal. The bench observed that the plan's execution should not be interrupted at this stage, although any subsequent developments would be contingent on the tribunal's eventual ruling.
Jaiprakash Associates, the flagship entity of the Jaypee Group, is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, with substantial exposure to lenders and a diversified asset base spanning real estate, infrastructure, and cement. The resolution process has attracted competing bids from major corporate groups, reflecting the scale and strategic value of the company's assets.
Adani Enterprises bid, approved by lenders and subsequently by the NCLT, involves a total consideration of INR 14,535 crore, with a portion structured as upfront payment and the remainder to be settled over a defined timeline. The proposal received majority support from creditors, forming the basis for its approval under the insolvency framework.
Vedanta, in its appeal, has raised concerns over the evaluation process adopted by the CoC, alleging that its competing offer was not assessed transparently. The company has sought judicial intervention to review the approval granted to Adani Enterprises, arguing that the process did not adequately reflect the relative merits of the bids submitted.
The tribunal's decision to allow the resolution plan to proceed without interim restraint ensures continuity in the insolvency process, even as legal scrutiny continues. The next hearing is expected to examine submissions from all stakeholders, including creditors, the resolution professional, and the competing bidder, before a final determination is made.
The case remains significant for the real estate and infrastructure sectors, given Jaiprakash Associates extensive land holdings and ongoing projects, particularly in regions such as Noida and Greater Noida, where project completion and asset monetisation remain closely tied to the outcome of the insolvency proceedings.
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