NEW DELHI: Mining giant Vedanta Ltd has filed an appeal in the Supreme Court seeking to stay the NCLT’s approval of Adani Group’s ₹14,535 crore bid for Jaiprakash Associates Ltd (JAL).
The appeal was submitted on March 25, following the National Company Law Appellate Tribunal’s (NCLAT) refusal to stay the plan’s implementation.
Adani Enterprises Ltd has also filed a caveat with the Supreme Court, requesting an opportunity to be heard before any decision is made regarding Vedanta’s petition.
On March 24, the insolvency appellate tribunal denied an interim stay on Vedanta’s plea against the NCLT ruling that approved Adani’s bid for JAL.
The two-member bench of NCLAT has requested a response from JAL’s Committee of Creditors (CoC) within a week, scheduling the next hearing for April 10.
Vedanta was in the running to acquire JAL through the insolvency process; however, lenders approved Adani’s resolution plan last November, which the NCLT subsequently endorsed.
Challenging the NCLT’s decision, Vedanta has submitted two appeals to the NCLAT—one questioning the validity of the resolution plan and another contesting the CoC’s approval.
During the hearings, the NCLAT noted that all parties agreed on the urgency of addressing the appeal’s issues.
However, the bench—comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra—made it clear that any implementation of the plan would await the outcome of Vedanta’s appeals.
The NCLAT also acknowledged submissions from the CoC’s counsel regarding potential consequences should the impugned order be overturned.
On March 17, the NCLT approved Adani Enterprises’ ₹14,535 crore bid for JAL, which Vedanta subsequently contested at the NCLAT, ensuring Adani’s participation in the proceedings.
Vedanta’s counsel argued that they were initially declared the highest bidder with a bid value of ₹16,726 crores, contrasted with Adani’s ₹14,535 crores.
The Insolvency and Bankruptcy Code emphasizes maximizing the value of stressed assets. However, the CoC has been accused of failing to uphold this standard.
Vedanta contended that the CoC should make decisions consistent with applicable laws and governing documents, asserting the need for equity in bidding opportunities.
In November, the CoC had approved Gautam Adani’s resolution plan for JAL, which offered the most substantial creditor support, garnering 89% of votes.
According to the CoC, the evaluation of plans included multiple factors beyond just headline value, such as feasibility and execution timelines.
Adani’s offer was favored due to a significant upfront payment and quicker delivery, while Vedanta’s payment plan extended over five years.
Lenders dismissed Vedanta’s revised offer as it was made post-bidding and would necessitate restarting the process, maintaining all bidders had fair chances during multiple bidding rounds.
JAL, which has substantial assets and interests across various sectors including real estate, cement manufacturing, and more, was admitted to Corporate Insolvency Resolution Process (CIRP) due to defaults on loans totaling ₹57,185 crores.
JAL oversees significant projects like Jaypee Greens in Greater Noida and has multiple commercial properties and cement plants across Madhya Pradesh and Uttar Pradesh.
Additionally, JAL holds investments in various subsidiaries such as Jaiprakash Power Ventures Ltd.
