In Setback To Vedanta, Top Court Refuses To Interfere With Order Allowing Adani To Acquire JAL

In a setback to Vedanta Group, the Supreme Court on Monday declined to stay the implementation of Adani Enterprises' resolution plan for debt-ridden Jaiprakash Associates Ltd.

A bench, led by Chief Justice (CJI) Surya Kant, noted that the insolvency proceedings are already listed for final hearing before the National Company Law Appellate Tribunal (NCLAT) on April 10, and therefore found no reason to intervene at this stage.

"In view of the fact that company appeals are now listed for final hearing before NCLAT on April 10, we see no reason to interfere," the bench, also comprising Justice Joymalya Bagchi, observed, while directing the appellate tribunal to take up the matter on an out-of-turn basis and continue hearings, if necessary, on the next working day.

The top court further directed that any major policy decision by the monitoring committee in the interim will be taken only after seeking leave of the NCLAT, given the nature and implications of the case.

Vedanta had approached the top court seeking a stay on Adani Enterprises' Rs 14,500-crore resolution plan, contending that the insolvency process lacked transparency and failed to maximise value for creditors.

The company argued that it had submitted a higher offer of Rs 16,726 crore and was initially declared the highest bidder before the outcome was allegedly reversed without adequate explanation.

It also questioned the decision-making process of the Committee of Creditors, describing the approval of Adani Enterprises' plan as "unfair, opaque, and inequitable".

However, the lenders defended their decision, arguing that resolution plans under the Insolvency and Bankruptcy Code (IBC) are not determined solely by the highest financial offer. Factors such as upfront cash component, feasibility of execution, and repayment timelines are also taken into account.

According to them, Adani Enterprises' proposal was preferred due to a higher upfront payment of around Rs 6,000 crore and a shorter repayment schedule of about two years.

They further contended that Vedanta's revised bid was submitted after the close of the bidding window and could not be considered without restarting the process.

Earlier, the NCLAT had declined to grant interim relief against the approval of Adani Enterprises' resolution plan by the National Company Law Tribunal, allowing the insolvency process to continue while seeking responses from stakeholders.

Jaiprakash Associates Limited is undergoing insolvency proceedings under the IBC, 2016, following defaults on loans amounting to over Rs 57,000 crore. The company has diversified business interests spanning real estate, cement, power, and infrastructure, with key assets including large township projects in Noida and Greater Noida, as well as investments in expressway and power ventures.

The proposed acquisition by Adani Group entities had earlier received approval from the Competition Commission of India (CCI), as required under the Competition Act, 2002, for such combinations.

Senior advocates Kapil Sibal and V.V. Giri appeared for Vedanta Ltd., while Solicitor General Tushar Mehta represented the Committee of Creditors (CoC). Adani Enterprises was represented by senior advocates Mukul Rohatgi and Ritin Rai, assisted by a team from Karanjawala & Co.

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