NEW DELHI: On Tuesday, the Insolvency Appellate Tribunal rejected an interim stay on Vedanta Group’s plea against the National Company Law Tribunal’s (NCLT) approval of Adani Group’s ₹14,535 crore bid for Jaiprakash Associates Ltd (JAL).
The two-member bench of the NCLAT requested a response from JAL’s Committee of Creditors (CoC) within a week and scheduled the case for hearing on April 10.
Vedanta Group had been competing to acquire JAL through the insolvency process but faced a setback when lenders approved Adani Enterprises’ resolution plan last November. The NCLT approved Adani’s bid last week.
In challenging the NCLT’s decision, Vedanta has submitted two appeals to the NCLAT, contesting the validity of the resolution plan and its approval by both the CoC and the NCLT.
During the hearing, NCLAT emphasized the urgency of the matter, indicating that it is crucial to resolve the issues promptly. “Given the nature of issues raised, we direct the appeal to be listed as a fresh case on April 10, 2026,” declared the NCLAT.
Both Vedanta and the CoC have been instructed to file concise notes of submission, limited to five pages, before the next hearing.
However, the bench, including Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra, noted that any implementation of the resolution plan would be contingent on the outcomes of Vedanta’s appeals.
“While the implementation of the resolution plan may continue, it will abide by the findings of the appeal,” stated the NCLAT in its interim order.
The NCLAT also registered a submission from CoC counsel indicating that if delisting of the Corporate Debtor (JAL) occurs per the resolution plan approved under the impugned order, and if that order is overturned, all delisting actions would automatically be canceled.
On March 17, the NCLT’s Allahabad bench affirmed Adani Enterprises’ ₹14,535 crore bid for JAL within the insolvency framework. Vedanta has contested this decision before NCLAT, which recently added Adani Enterprises as a party to the proceedings.
During discussions on Tuesday, Vedanta’s legal representatives argued that they had been declared the highest bidder by JAL’s Committee of Creditors, with a bid value of ₹16,726 crores compared to Adani’s ₹14,535 crore offer.
According to the Insolvency & Bankruptcy Code, the goal is to maximize the value of the distressed asset. Yet, the CoC is accused of neglecting this objective, failing to properly consider compliance with the IBC framework.
The counsel asserted that the CoC’s choice for a resolution plan must adhere to the applicable laws and governing documents, maintaining that all participants should have a fair and equal opportunity during the bidding process, particularly since Vedanta faced multiple rounds of bidding without subsequent negotiations.
In November, the CoC had opted for Gautam Adani’s proposal, which garnered 89 percent of creditor support, exceeding bids from both Vedanta and Dalmia Bharat.
The CoC defended its decision, asserting that the resolution process complied with all IBC regulations and clarified that no bidder is guaranteed success, even if they offer the highest price. They emphasized that evaluation was based on various factors, such as upfront payments and viability, not solely the bid’s headline value.
Adani’s bid was favored for offering approximately ₹6,000 crore upfront and faster payments within two years, in contrast to Vedanta’s extended payment schedule of up to five years. Additionally, lenders dismissed Vedanta’s revised offer as it was made post-bidding closure, which would necessitate restarting the process. They argued that every bidder was granted equal chances to enhance their offers.
JAL, known for its premium assets and diverse ventures in real estate, cement manufacturing, hospitality, power, and construction, entered the Corporate Insolvency Resolution Process (CIRP) in June 2024, following loan defaults totaling ₹57,185 crore.
JAL holds significant real estate projects, such as Jaypee Greens in Greater Noida and Jaypee International Sports City near the forthcoming Jewar International Airport. In the Delhi-NCR region, it operates three commercial office spaces and five hotels situated in Delhi-NCR, Mussoorie, and Agra, while maintaining four cement plants across Madhya Pradesh and Uttar Pradesh and several leased limestone mines in Madhya Pradesh. The company also has stakes in several subsidiaries, including Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.
