NEW DELHI: The Supreme Court of India has declined to stay the implementation of Adani Enterprises’ resolution plan for Jaiprakash Associates Ltd (JAL), allowing the acquisition process to move forward for the time being. This decision follows a challenge by Vedanta Ltd, which sought to halt the proceedings. While the court did not freeze Adani’s plan, it directed the National Company Law Appellate Tribunal (NCLAT) to hear Vedanta’s appeal on a priority basis, specifically scheduling the matter for April 10.
The legal dispute centers on the evaluation process conducted by the Committee of Creditors (CoC). Vedanta’s primary contention is that its bid of Rs 16,726 crore was significantly higher than the Adani Group’s offer, which is valued around Rs14,500 crore. Vedanta argues that by selecting a lower offer, the CoC failed to fulfill the core mandate of the Insolvency and Bankruptcy Code (IBC), which emphasizes the maximization of value for all stakeholders.
In response, the resolution professional and the creditors have maintained that the selection was made based on a structured evaluation matrix. They argue that the CoC’s "commercial wisdom" encompasses more than just the final bid amount, including factors such as the feasibility of the plan and the reliability of the proponent. Adani’s approved plan includes an upfront payment of approximately ₹6,005 crore and a commitment to provide ₹800 crore in working capital and capital expenditure within 180 days.
To balance the interests of both parties, the Supreme Court introduced specific safeguards. It ruled that any major policy decisions regarding JAL’s operations must receive prior approval from the NCLAT. Furthermore, the court clarified that the ongoing implementation of the Adani plan remains subject to the final ruling of the appellate tribunal. This ensures that while the transition proceeds, it remains legally reversible depending on the outcome of the April hearing.
Kapil Sibal and VV Giri appeared for Vedanta Ltd. The CoC of Jaiprakash Associates Ltd. was represented by solicitor general of India Tushar Mehta and Niranjan Reddy.
Adani Enterprises was represented by Senior Advocate Mukul Rohatgi and Ritin Rai.