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National Company Law Appellate Tribunal has dismissed petitions filed by Vedanta Ltd challenging the approval of Adani Enterprises Ltd’s resolution plan for debt-laden Jaiprakash Associates Ltd. The ruling upholds an earlier decision by the National Company Law Tribunal, affirming the lenders’ selection of Adani’s bid under the insolvency process. The appellate tribunal found no merit in Vedanta’s objections, despite the latter offering a higher financial bid. The decision reinforces the primacy of the Committee of Creditors’ commercial judgement in insolvency cases and clears the way for Adani Group to proceed with the acquisition of JAL’s assets, estimated at over INR 14,500 crore.
National Company Law Appellate Tribunal has dismissed appeals filed by Vedanta Ltd against the approval of Adani Enterprises Ltd’s resolution plan for Jaiprakash Associates Ltd, thereby upholding the decision taken by lenders under the insolvency framework. Advertisement
The appellate tribunal, in its order issued in the past week, found no merit in the objections raised by Vedanta and declined to interfere with the earlier ruling of the National Company Law Tribunal (NCLT), which had approved Adani Group’s bid for the financially distressed company.
The case relates to the corporate insolvency resolution process of Jaiprakash Associates, where lenders had approved Adani Enterprises’ resolution plan valued at approximately INR 14,535 crore. Vedanta had challenged this decision, arguing that its competing bid, reportedly higher at around INR 17,900 crore, offered better value to creditors.
However, the tribunal emphasised that the Committee of Creditors (CoC) had exercised its commercial judgement within the framework of the Insolvency and Bankruptcy Code. It observed that no legal grounds had been established to question the decision-making process or to warrant intervention in the approved resolution plan.
The ruling effectively endorses the lenders’ preference for Adani’s proposal, which was selected during the bidding process despite the presence of higher competing offers. The tribunal also noted that there was no material irregularity in the conduct of the resolution process or in the evaluation of bids submitted by competing entities.
Jaiprakash Associates, which has significant exposure across real estate, infrastructure, and cement assets, has been undergoing insolvency proceedings with admitted claims exceeding INR 57,000 crore. The resolution of the company is considered one of the larger cases under India’s insolvency regime, involving multiple stakeholders and high-value assets.
The dismissal of Vedanta’s appeal clears the way for Adani Group to proceed with the acquisition and implementation of the resolution plan. The transaction is expected to involve assets including real estate developments, infrastructure projects, and other operational businesses associated with Jaiprakash Associates.
Legal proceedings around the case had seen multiple challenges, including earlier attempts by Vedanta to halt the resolution process. However, both the appellate tribunal and higher judicial forums had declined to intervene in the lenders’ decision, reinforcing the principle that commercial decisions taken by the CoC are generally not subject to judicial review unless procedural irregularities are demonstrated.
The latest ruling provides clarity on the resolution process and strengthens the position of Adani Group in completing the acquisition of Jaiprakash Associates, marking a significant development in one of the country’s high-profile insolvency cases.
Source - PTI
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