Vedanta moves SC against Adani's JAL resolution plan after NCLAT refusal

Vedanta challenges Adani Enterprises' Rs 14,543 crore JAL resolution plan in Supreme Court after NCLAT declines to stay implementation amid dispute over bidding process

Mines and metals giant Vedanta has moved the Supreme Court, contesting the approval of Adani Enterprises’ ₹14,543 crore resolution plan for Jaiprakash Associates Ltd (JAL), after failing to secure interim relief from the appellate tribunal.

 

The petition, filed on March 25 and registered on March 30, according to the Supreme Court website, follows the National Company Law Appellate Tribunal’s (NCLAT’s) refusal to stay the implementation of the plan. 

 

Vedanta has named JAL’s resolution professional, Bhuvan Madan, as a respondent.

 

The company, which lost out in the insolvency process bidding, has consistently challenged the lenders’ decision to back Adani Enterprises, alleging that its own higher bid was overlooked and that the process was not conducted fairly.

   

Its latest move comes after unsuccessful challenges before both the National Company Law Tribunal (NCLT) and the NCLAT.

 

On March 24, the NCLAT declined to halt the execution of the resolution plan, allowing it to proceed subject to the outcome of the appeal.

 

The tribunal also refused to stay the delisting of JAL, recording submissions from the Committee of Creditors (CoC) that any action taken under the plan would be reversed if it were ultimately set aside.

 

The CoC is the supreme decision-making body in the insolvency process. 

 

Vedanta had earlier argued that it emerged as the highest bidder during the challenge process, quoting ₹12,505.85 crore on a net present value (NPV) basis. It has claimed that Adani’s approved plan was lower in comparison, by roughly ₹3,400 crore in overall value and about ₹500 crore in NPV terms. The company has also alleged that it was neither given reasons for rejection nor an opportunity to clarify its proposal.

 

In November last year, Vedanta submitted a revised offer, increasing upfront cash to around ₹6,563 crore and proposing an equity infusion of ₹800 crore, which, it said, would enhance creditor recoveries.

 

However, lenders rejected the revised bid, stating it was submitted after the deadline and that reopening the process would compromise on fairness.

 

The CoC has defended its decision, stating that resolution plans are assessed on multiple parameters, including upfront recovery, feasibility, viability, and execution timelines, rather than solely on headline value.

 

Adani’s proposal, which includes about ₹6,000 crore in upfront payment and a shorter repayment horizon of roughly two years, was considered more favourable than Vedanta’s staggered payment plan extending up to five years.

 

The NCLT, in its order dated 17 March, upheld the lenders’ decision, reiterating that the commercial wisdom of the CoC is paramount unless there is a clear legal infirmity. 

 

Adani’s plan secured about 94 per cent approval from financial creditors, exceeding the statutory threshold, with National Asset Reconstruction Company Ltd (NARCL) playing a key role.

 

The value of Adani Enterprises’ resolution plan stands at about ₹15,343 crore, including ₹800 crore earmarked for capital expenditure and working capital.

 

Against admitted claims of ₹60,637 crore, this translates into a recovery of roughly 24 per cent. 

 

Jaiprakash Associates has a land bank of nearly 4,000 acres in Noida and Greater Noida, and along the Yamuna Expressway, along with projects such as Jaypee Greens and the Jaypee International Sports City near upcoming Noida International Airport.