In a key development in the insolvency proceedings of Jaiprakash Associates Ltd (JAL), the resolution professional has informed the National Company Law Appellate Tribunal (NCLAT) that Vedanta Limited was never formally declared the highest bidder during the resolution process.
According to submissions made before the tribunal, the September 5 communication circulated among bidders only reflected the highest financial value discovered during a competitive evaluation. It was not an official declaration of any successful or winning bidder. The clarification comes amid Vedanta’s challenge to the approval of a rival resolution plan.
The resolution professional argued that Vedanta’s claim of being the highest bidder was misleading and not supported by the actual process followed by the Committee of Creditors (CoC). The CoC, which evaluates bids in insolvency cases, reportedly used a combined assessment model that included both financial and non-financial parameters, rather than selecting a winner based solely on the highest bid amount.
Vedanta has been contesting the approval of Adani Enterprises Limited’s resolution plan for JAL, arguing that its own revised offer was financially superior. The company has also claimed that procedural fairness was not maintained during the final stages of evaluation.
However, the resolution professional maintained before NCLAT that no bidder was officially declared the highest bidder at any stage, and that Vedanta’s interpretation of the communication was incorrect. The tribunal was also told that allowing post-process revisions or selective interpretation of bid communications would undermine the integrity and finality of insolvency proceedings.
The case is part of the larger insolvency resolution of Jaiprakash Associates, a heavily debt-laden infrastructure company undergoing restructuring under the Insolvency and Bankruptcy Code. The matter continues to be examined by the appellate tribunal, with further hearings scheduled to review objections raised by Vedanta and other stakeholders.
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