NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has postponed its hearing regarding Vedanta Group’s challenges against the selection of Adani Enterprises’ bid for the financially troubled Jaiprakash Associates Ltd (JAL) until April 16.
The case will be reviewed on Thursday, following a change in the bench composition due to one member’s unavailability.
The tribunal was expected to conclude arguments from Vedanta’s legal team, after which lenders and the resolution professional would present their cases. However, the NCLAT decided to defer proceedings after discussions with the involved parties.
Last Friday, Vedanta raised concerns about the evaluation criteria used by JAL’s lenders, who selected Adani Enterprises’ bid of Rs 3,400 crore for the distressed firm. Vedanta argued that the evaluation process compromised commercial judgment by the committee of creditors (CoC).
Vedanta has submitted two petitions contesting the March 17 ruling from the Allahabad bench of NCLT, which approved Adani Enterprises Ltd’s bid of Rs 14,535 crore to acquire JAL through the insolvency process.
On March 24, NCLAT declined to stay the NCLT’s order approving Adani Group’s bid for JAL, but noted that this plan would depend on the outcome of appeals from the Vedanta Group led by Anil Agarwal.
This interim order was challenged in the Supreme Court, which also denied a stay but instructed that the monitoring committee seek the Tribunal’s approval for any major policy decisions.
In the bidding process, Adani Enterprises outbid Vedanta and Dalmia Bharat, securing 89% of the creditor votes, followed by Dalmia Cement and Vedanta.
The CoC defended its selection, clarifying that the process adhered to all regulations outlined in the Insolvency and Bankruptcy Code (IBC), emphasizing that no bidder has a guaranteed right to win, even with the highest bid. They noted that plans were assessed on various factors, including immediate cash offers, feasibility, and execution, rather than just the headline bid value.
JAL, which possesses high-quality assets and diverse interests in real estate, cement manufacturing, hospitality, power, and engineering, entered the Corporate Insolvency Resolution Process (CIRP) in June 2024 due to loan defaults totaling Rs 57,185 crore.
JAL’s notable projects include Jaypee Greens in Greater Noida, parts of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the future Jewar International Airport. It also has three commercial and industrial office spaces in the Delhi-NCR region and five hotels in areas like Mussoorie and Agra.
The company operates four cement plants located in Madhya Pradesh and Uttar Pradesh, as well as leasing limestone mines in Madhya Pradesh. Additionally, it has investments in various subsidiaries, such as Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd.
