SC Refuses to Halt Adani’s Resolution Plan for Jaiprakash Associates, Deals Blow to Vedanta

New Delhi: In a setback to the Vedanta Group, the Supreme Court of India on Monday declined to stay the implementation of Adani Enterprises’ resolution plan for debt-laden Jaiprakash Associates Limited.

A bench headed by Chief Justice Surya Kant noted that the matter is already scheduled for final hearing before the National Company Law Appellate Tribunal (NCLAT) on April 10, and therefore saw no reason to intervene at this stage. The bench, also comprising Justice Joymalya Bagchi, directed the tribunal to take up the case on a priority basis and continue hearings without delay if required.

The apex court further ruled that any significant policy decisions by the monitoring committee in the interim must be made only after obtaining permission from the NCLAT, considering the sensitivity of the case.

The Vedanta Group had approached the court seeking a stay on Adani Enterprises’ Rs 14,500-crore resolution plan, alleging lack of transparency and failure to maximise value for creditors. The company claimed it had submitted a higher bid of Rs 16,726 crore and was initially declared the top bidder before the outcome was reversed without adequate justification.

It also raised concerns over the functioning of the Committee of Creditors, calling the approval process “unfair, opaque, and inequitable.”

However, lenders defended their decision, stating that under the Insolvency and Bankruptcy Code, resolution plans are evaluated on multiple parameters beyond just the highest bid. These include upfront cash payments, feasibility, and repayment timelines. They argued that Adani Enterprises’ proposal was preferred due to a higher upfront payment of around Rs 6,000 crore and a faster repayment schedule of nearly two years.

Lenders also pointed out that Vedanta’s revised bid came after the bidding deadline had closed, making it ineligible without restarting the process.

Earlier, the NCLAT had refused to grant interim relief against the approval granted by the National Company Law Tribunal, allowing the insolvency proceedings to continue while seeking responses from stakeholders.

Jaiprakash Associates is currently undergoing insolvency proceedings after defaulting on loans exceeding Rs 57,000 crore. The company has diverse interests in real estate, cement, power, and infrastructure, including major township projects in Noida and Greater Noida.

The proposed acquisition by Adani Group entities had already received clearance from the Competition Commission of India under the Competition Act, 2002.

Senior advocate Kapil Sibal and V.V. Giri appeared for Vedanta, while Solicitor General Tushar Mehta represented the lenders. Adani Enterprises was represented by senior advocates Mukul Rohatgi and Ritin Rai.

With inputs from IANS