NCLAT allows Adani JAL plan to proceed, denies relief to Vedanta

NCLAT allowed Adani Enterprises' JAL resolution plan to proceed while refusing interim relief to Vedanta, with execution subject to final outcome of the appeal

The National Company Law Appellate Tribunal (NCLAT) on Tuesday allowed the resolution process for Jaiprakash Associates Limited (JAL) to proceed, declining to pause the ₹14,543 crore plan submitted by Adani Enterprises Limited, or to intervene in the company’s proposed delisting, even as it admitted Vedanta Limited’s appeal for consideration.

 

A Bench headed by Chairperson Justice Ashok Bhushan refused the interim relief sought by Vedanta, but issued notice to the Committee of Creditors (CoC), directing it to file its response within a week. The tribunal clarified that execution of the resolution plan may continue, subject to the outcome of the proceedings.

   

“Implementation of the plan shall go on. However, that shall abide by the result of this case,” the Bench observed.

 

Vedanta’s request to stall the delisting was also turned down. The CoC argued that any actions taken pursuant to the plan would automatically be reversed if the appellate tribunal ultimately sets aside the resolution. The matter is scheduled for further hearing on April 9.

 

CoC is the supreme decision-making body comprising financial creditors who manage the insolvency process of a distressed company.

 

Vedanta, led by Anil Agarwal, has challenged the March 17 order of the Allahabad Bench of the National Company Law Tribunal (NCLT), which approved Adani Enterprises’ resolution plan and dismissed Vedanta’s objections. The company has previously characterised the approval as a commercial conspiracy and sought a fresh evaluation of its own bid.

 

The dispute centres on the interpretation of value maximisation under the Insolvency and Bankruptcy Code (IBC). Vedanta has contended that its bid, pegged at ₹12,505.85 crore on a net present value (NPV) basis, was superior and that lenders failed to ensure a fair and transparent process. It claimed Adani’s offer was lower by approximately ₹3,400 crore in total value and about ₹500 crore in NPV terms.

 

The mining major has also alleged procedural lapses, stating it was neither provided reasons for the rejection of its bid, nor allowed to clarify its proposal. It pointed to a revised offer submitted on November 8, 2025, which increased upfront cash to around ₹6,563 crore and included an equity infusion of ₹800 crore, arguing that this should have been taken into account. The CoC, however, has maintained that the process adhered to the IBC framework and emphasised that the selection of a resolution applicant is not determined solely by the highest bid. 

 

Lenders said multiple parameters, including upfront payment, feasibility, and execution capability, were considered. Adani’s proposal, they noted, offered roughly ₹6,000 crore upfront, and envisaged faster payouts within two years, compared to Vedanta’s timeline extending up to five years.

 

Lenders also rejected Vedanta’s revised offer on the ground that it was submitted after the bidding process had concluded and accepting it would have necessitated restarting the entire exercise. According to the CoC, all participants were treated equally and provided sufficient opportunity to improve their bids.

 

In its March 17 ruling, the NCLT upheld the lenders’ decision, reiterating that the commercial wisdom of the CoC is paramount and not subject to judicial interference in absence of any legal infirmity. It found the process to be compliant with the law and held that Vedanta could not claim entitlement to selection, merely on account of being the highest bidder.

 

Adani Enterprises’ plan secured 93.8% approval from financial creditors, comfortably exceeding the statutory threshold. National Asset Reconstruction Co. Ltd (NARCL), the largest creditor, played a pivotal role in supporting the resolution.

 

The approved plan entails a bid of approximately ₹14,543 crore, with an additional ₹800 crore earmarked for capital expenditure and working capital, taking the overall value to about ₹15,343 crore. Against admitted claims of ₹60,637 crore, this translates to an estimated recovery of around 24%.

 

Separately, Velocity Enterprises, a contractor based in Bhopal, has also moved the NCLAT after its claim exceeding ₹1 crore relating to contractual work was rejected by the NCLT in its March 17 order. 

Battle of the bids 

 

• Vedanta alleges higher bid overlooked, procedural lapses
• CoC backs Adani bid, citing upfront cash, faster payouts, execution strength
• Plan secured 93.8% creditor approval; recovery estimated at 24%
• CoC says actions reversible if plan later set aside
• Next hearing on April 9; implementation continues meanwhile