NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has reserved its ruling on Vedanta’s two petitions regarding the acceptance of Adani Enterprises’ bid to acquire the financially distressed Jaiprakash Associates Ltd (JAL) via insolvency proceedings.
The hearing concluded with a two-member NCLAT bench, led by Chairperson Ashok Bhushan and Member Technical Barun Mitra, after considering arguments from Vedanta and various respondents, including the Resolution Professional, the Committee of Creditors (CoC), and Adani Enterprises.
The court has requested both parties to submit their written arguments within two days.
Vedanta’s attorney questioned the evaluation criteria used by JAL lenders, who chose Adani Enterprises’ bid of Rs 14,535 crore, despite Vedanta offering a higher bid of Rs 17,926 crore.
On March 24, NCLAT did not grant an interim stay on Vedanta Group’s appeal against the NCLT’s March 17 decision that approved Adani Group’s bid. However, it noted that the plan would remain contingent on the outcome of Vedanta’s appeals.
This NCLAT ruling was subsequently challenged in the Supreme Court, which declined to issue a stay but instructed that the monitoring committee must obtain Tribunal approval before making significant policy decisions.
Adani Enterprises secured the bid for JAL by surpassing offers from Vedanta and Dalmia Bharat, receiving 89% of creditor votes, followed by Dalmia Cement and Vedanta.
The CoC defended its choice, asserting compliance with all principles of the Insolvency and Bankruptcy Code (IBC), and emphasized that no bidder has an inherent right to win, even with the highest offer.
Decisions were influenced by various factors, including initial cash offers, feasibility, and execution capabilities, not merely by the headline bid value.
JAL, known for its valuable assets and interests in real estate, cement manufacturing, hospitality, power, and engineering, entered the corporate insolvency resolution process (CIRP) in June 2024 after defaulting on loan payments totaling Rs 57,185 crore.
Notable projects under JAL include Jaypee Greens in Greater Noida and Jaypee International Sports City near Jewar International Airport. Additionally, JAL operates three commercial spaces in Delhi-NCR and has five hotels in Delhi, Mussoorie, and Agra.
JAL also manages four cement plants across Madhya Pradesh and Uttar Pradesh, along with several leased limestone mines in Madhya Pradesh, and holds stakes in subsidiaries such as Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.
