Adani Cleared to Acquire JAL as Supreme Court Rejects Vedanta Stay Plea
Supreme Court allows Adani to acquire JAL, Vedanta loses challenge.
In a setback to Vedanta Group, the Supreme Court on Monday refused to stay Adani Enterprises’ resolution plan for debt-laden Jaiprakash Associates Limited (JAL), allowing the insolvency process to continue. The bench, led by Chief Justice Surya Kant and comprising Justice Joymalya Bagchi, noted that the matter is already listed for final hearing before the National Company Law Appellate Tribunal (NCLAT) on April 10.
The court observed, “In view of the fact that company appeals are now listed for final hearing before NCLAT on April 10, we see no reason to interfere,” and directed the tribunal to take up the matter on an out-of-turn basis if necessary. It further clarified that any major policy decision by the monitoring committee during the interim would require prior leave from the NCLAT, given the high stakes involved.
Vedanta had approached the Supreme Court seeking a stay on Adani Enterprises’ ₹14,500-crore resolution plan, arguing that the insolvency process lacked transparency and failed to maximise value for creditors. The company claimed it had submitted a higher bid of ₹16,726 crore and was initially declared the highest bidder before the outcome was allegedly reversed without sufficient explanation. Vedanta described the Committee of Creditors’ decision as “unfair, opaque, and inequitable.”
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Lenders and the Committee of Creditors defended the selection, emphasizing that resolution plans under the Insolvency and Bankruptcy Code (IBC) are evaluated on multiple parameters beyond the highest bid. Adani Enterprises’ plan was preferred due to a higher upfront payment of approximately ₹6,000 crore and a shorter repayment timeline of about two years. They also noted that Vedanta’s revised bid was submitted after the bidding window closed and could not be considered without restarting the process.
JAL is undergoing insolvency proceedings under the IBC, 2016, after defaulting on loans exceeding ₹57,000 crore. The company operates across diverse sectors including real estate, cement, power, and infrastructure, with key assets such as township projects in Noida and Greater Noida, along with expressway and power investments. Adani Group’s proposed acquisition had earlier received approval from the Competition Commission of India (CCI) under the Competition Act, 2002.
Senior advocates Kapil Sibal and V.V. Giri represented Vedanta Ltd., while Solicitor General Tushar Mehta appeared for the Committee of Creditors. Adani Enterprises was represented by senior advocates Mukul Rohatgi and Ritin Rai, assisted by a team from Karanjawala & Co. The Supreme Court’s refusal to intervene allows the resolution plan to proceed while NCLAT prepares to hear the matter on April 10.
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