NCLAT Dismisses Vedanta’s Challenge To Adani’s Jaiprakash Associates Bid

The National Company Law Appellate Tribunal (NCLAT) on Monday dismissed two petitions filed by Vedanta Ltd , which had challenged the selection of Adani Enterprises’ resolution plan for the debt-ridden Jaiprakash Associates Ltd (JAL) under the insolvency process.

A bench comprising Chairperson Ashok Bhushan and Technical Member Barun Mitra ruled that there were no valid grounds to interfere with the decision of the National Company Law Tribunal (NCLT). The tribunal stated, “There is no merit in the appeal. Both appeals are dismissed.”

The NCLAT upheld the decision of the Committee of Creditors (CoC) , noting that it was taken based on its “commercial wisdom” after evaluating multiple resolution plans. It also observed that there was no material irregularity in the conduct of the process by the Resolution Professional.

Vedanta had argued that its bid was financially stronger, claiming it was about ₹3,400 crore higher in gross value and nearly ₹500 crore higher in net present value compared to Adani’s offer. However, the tribunal rejected this contention, holding that the CoC’s decision cannot be termed arbitrary or perverse merely because a higher-value bid was not selected.

Earlier, on March 17 , the NCLT Allahabad Bench had approved Adani Enterprises’ ₹14,535-crore resolution plan to acquire JAL through insolvency proceedings. Vedanta had challenged this order before NCLAT, which had also earlier refused to grant an interim stay.

The appellate tribunal had concluded hearings on April 23 , after submissions from all stakeholders, including Vedanta, the Resolution Professional, the CoC, and Adani Enterprises. The CoC defended its decision, stating that the evaluation complied fully with the Insolvency and Bankruptcy Code (IBC) and was not based only on headline bid value.

It emphasised that factors such as upfront cash payment, feasibility, execution capability, and overall viability of the plan were also considered. The lenders maintained that no bidder has a guaranteed right to succeed, even if it offers a higher financial value.

Adani Enterprises had secured the highest creditor backing with around 89% votes from the CoC , ahead of Vedanta and Dalmia Bharat. The company emerged as the successful resolution applicant for JAL, which was admitted to the Corporate Insolvency Resolution Process (CIRP) in June 2024 after defaulting on loans of around ₹57,185 crore .

JAL holds diversified assets, including real estate projects in Delhi-NCR, cement plants in Madhya Pradesh and Uttar Pradesh, hospitality properties, and infrastructure investments.