NCLAT declines to stay Vedanta plea against nod to Adani’s JAL bid

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday refused to grant an interim stay on the Vedanta Group’s plea challenging the NCLT’s approval of Adani Enterprises Ltd’s Rs 14,535 crore bid for acquiring Jaiprakash Associates Ltd (JAL).

A two-member bench of the appellate tribunal directed the Committee of Creditors (CoC) of JAL to file its response within a week and scheduled the next hearing for April 10.

The tribunal noted that all parties agreed on the need for an expedited hearing given the nature of the dispute.

While declining interim relief, the bench clarified that implementation of the resolution plan may continue but will remain subject to the final outcome of Vedanta’s appeals. It also recorded submissions from the CoC that any delisting of JAL under the approved plan would automatically stand cancelled if the tribunal later sets aside the order.

Vedanta has filed two appeals before the NCLAT—one challenging the validity of the resolution plan and the other contesting its approval by both the CoC and the National Company Law Tribunal (NCLT), which cleared Adani’s bid on

March 17.

During the hearing, Vedanta argued that it had offered a higher bid of Rs 16,726 crore and was initially declared the highest bidder by the CoC.

It contended that the insolvency process must prioritise value maximisation under the Insolvency and Bankruptcy Code, and alleged that the lenders failed to ensure a fair and transparent bidding process.

The CoC, however, defended its decision, stating that the process complied with all regulatory norms and that evaluation was based on multiple parameters, including upfront cash, feasibility and execution timelines—not just the headline bid value.

Adani’s proposal was preferred as it offered around Rs 6,000 crore upfront and faster payments within two years, compared to Vedanta’s longer payment schedule.

Lenders also rejected Vedanta’s revised offer, saying it was submitted after the bidding process had closed and accepting it would have required restarting the

process.

JAL was admitted into insolvency proceedings in June 2024 after defaulting on loans aggregating Rs 57,185 crore.

The company has diversified interests across real estate, cement, hospitality, power and infrastructure, including marquee projects such as Jaypee Greens and the Jaypee International Sports City in the NCR region.