Tag: NCLAT

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Corporate

NCLAT upholds Adani bid, rejects Vedanta appeal

India’s corporate insolvency process for Jaiprakash Associates Ltd (JAL) saw a key development as the National Company Law Appellate Tribunal (NCLAT) upheld the selection of Adani Enterprises as the winning bidder, while dismissing challenges raised by Vedanta Ltd.

The tribunal rejected Vedanta’s petitions against the Committee of Creditors’ decision, which had approved Adani’s resolution plan for the debt-laden company. The NCLAT observed that there was “no merit” in the objections raised and declined to interfere with the lenders’ commercial judgment.

The case relates to the insolvency resolution of Jaiprakash Associates Ltd, a heavily indebted conglomerate with interests across infrastructure, real estate, and cement. Under the Insolvency and Bankruptcy Code, creditors evaluated competing bids to determine the best recovery option.

Adani’s resolution plan, valued at around ₹14,500 crore, had already been approved by the Committee of Creditors. Vedanta had also submitted a competing bid, which it argued was higher in value and more beneficial for lenders. However, the lenders chose Adani’s proposal, citing overall feasibility and structure of the plan.

Vedanta challenged this decision in the appellate tribunal, claiming that the evaluation process did not maximise value for stakeholders and that its bid should have been considered more favourably. The tribunal, however, found no grounds to overturn the earlier approval by the National Company Law Tribunal (NCLT).

In a separate but related development, the tribunal also dismissed Vedanta’s appeal challenging aspects of the bidding process, further strengthening Adani’s position in the acquisition process.

The ruling effectively clears the way for Adani Enterprises to proceed with the acquisition of Jaiprakash Associates under the insolvency framework, subject to remaining procedural requirements.

Market observers say the decision reinforces the principle that creditor committees have broad discretion in choosing resolution plans, and judicial bodies are generally reluctant to interfere unless there is a clear procedural violation.

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Corporate

Vedanta not declared highest bidder for JAL

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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Beyond

SC allows Adani’s Jaypee takeover to proceed

The Supreme Court has allowed the Adani Group’s takeover of Jaiprakash Associates Ltd (JAL) to move ahead, refusing to put the deal on hold while a legal challenge by Vedanta is still under review.

The top court declined to interfere with an order passed by the National Company Law Appellate Tribunal (NCLAT), which had cleared the way for Adani Enterprises’ resolution plan for the financially troubled company.

Vedanta had approached the Supreme Court seeking a stay on the process, arguing that its bid for Jaiprakash Associates was higher and offered better returns for lenders. The company also questioned the transparency and fairness of the bidding process.

However, the court said there was no reason to stop the deal at this stage. It noted that Vedanta’s appeal is already pending before the NCLAT and will be heard soon. The tribunal is expected to take up the matter in the coming days.

While refusing to pause the takeover, the Supreme Court asked the NCLAT to handle the case without delay. It also made it clear that any further steps in implementing the resolution plan should be subject to the tribunal’s approval.

Jaiprakash Associates is currently undergoing insolvency proceedings after defaulting on large debts. As part of the resolution process under the Insolvency and Bankruptcy Code, lenders had selected Adani’s bid over others, including Vedanta’s.

According to reports, lenders favoured Adani’s proposal due to factors such as quicker payments and more certainty in execution, even though Vedanta claimed to have made a higher offer.

The court’s decision is a positive development for the Adani Group, as it allows the acquisition process to continue without interruption. At the same time, Vedanta’s challenge remains active, and the final outcome will depend on the NCLAT’s ruling.

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