The National Company Law Appellate Tribunal (NCLAT) on Wednesday, April 22, has reserved its judgment on Vedanta Ltd’s plea challenging the selection of Adani Group’s bid for Jaiprakash Associates Ltd, marking the latest development in the high-stakes insolvency battle.
The appellate tribunal concluded arguments from Vedanta, Adani and the lenders in the matter.
Vedanta has cited its bid of ₹17,926 crores vs Adani’s bid of ₹14,535 crores, claims that even in NPV terms its bid is higher by ₹500 crores. Vedanta claimed that Adani’s approved bid was even below the liquidation value.
The mining major argued that the Committee of Creditors’ (CoC) decision goes against the fundamental IBC principle of value maximisation, questioning the basis on which the winning bid was selected.
Lenders, however, defended the selection of Adani, citing commercial wisdom, and maintained that their decision is compliant with the Insolvency and Bankruptcy Code. They also opposed Vedanta’s proposal to increase the upfront payment at this stage.
On March 17, the National Company Law Tribunal (NCLT), Allahabad bench approved Adani Enterprises’ ₹14,535 crore resolution plan for Jaiprakash Associates after it secured about 89% approval from the Committee of Creditors in November.
Vedanta has challenged a March 24 NCLAT order that had declined to halt the implementation of Adani’s plan, and subsequently moved the Supreme Court seeking a stay. On April 6, the Supreme Court refused to stay the implementation but directed the NCLAT to hear Vedanta’s plea on April 10.
Vedanta has consistently maintained that its proposal offered higher value, arguing that the lenders’ decision to back a lower bid runs contrary to the objective of maximising value under the Insolvency and Bankruptcy Code.
The NCLAT’s ruling will be closely watched for its implications on bidder evaluation and the scope of lenders’ commercial wisdom in insolvency proceedings.