New Delhi: The National Company Law Appellate Tribunal on Monday dismissed appeals filed by Vedanta Ltd, upholding the winning bid of the Adani Group for debt-ridden Jaiprakash Associates Ltd (JAL).
The appellate tribunal ruled that there was no merit in Vedanta’s challenge to the resolution process and affirmed the decision of the Committee of Creditors (CoC), which had approved Adani’s bid of Rs 14,535 crore.
Tribunal upholds creditors’ “commercial wisdom”
A Bench led by Justice (Retd.) Ashok Bhushan stated that the CoC’s decision was based on a comprehensive evaluation of competing bids and could not be termed arbitrary.
The tribunal observed that “no grounds have been made out” to interfere with the earlier order passed by the National Company Law Tribunal, which had approved Adani’s resolution plan.
It further emphasised that the CoC’s decision reflected its “commercial wisdom”, a principle consistently upheld in insolvency cases under India’s bankruptcy framework.
Vedanta’s higher bid rejected
Vedanta had submitted a revised offer worth Rs 16,070 crore, claiming it provided higher value than Adani’s proposal. However, lenders declined to consider the revised bid as it was submitted after the deadline.
The company argued that the process lacked transparency and that its proposal offered better returns, including a higher net present value.
Rejecting these claims, NCLAT held that the CoC’s decision not to accept a higher bid did not make the process unfair or irregular. It noted that evaluation was based on multiple factors beyond headline value.
Background of the insolvency case
JAL was admitted into insolvency proceedings in June 2024 after defaulting on loans exceeding Rs 57,000 crore. The case attracted significant interest from investors, with 28 expressions of interest and six final bidders.
Among the key contenders were Vedanta, Adani Enterprises, and Dalmia Bharat. Ultimately, Adani’s bid emerged as the preferred choice, securing 93.81 per cent of the creditors’ vote in November 2025.
The lenders cited better upfront recovery, feasibility, and execution capability as reasons for favouring Adani’s proposal.
Supreme Court had declined interim relief
Earlier, Vedanta had sought a stay on the resolution process, but both NCLAT and the Supreme Court of India declined to halt implementation of the plan.
The apex court, however, directed that any major decisions by the monitoring committee would require tribunal approval and asked for an expedited hearing of the case.
Key assets of Jaiprakash Associates
Jaiprakash Associates holds a diverse portfolio of assets across sectors such as real estate, cement, hospitality, and infrastructure.
Its key properties include Jaypee Greens developments in Noida and Greater Noida, the Jaypee International Sports City, and India’s only Formula One circuit. The company also owns cement plants in Madhya Pradesh and Uttar Pradesh, along with hotel properties in multiple cities.
No irregularities found in process
The tribunal also dismissed Vedanta’s allegations regarding flaws in evaluation metrics and procedural lapses. It ruled that there was “no material irregularity” in the conduct of the resolution process by the Resolution Professional.
The CoC maintained that the selection process adhered strictly to the Insolvency and Bankruptcy Code (IBC) and that bidders do not have an automatic right to win even with the highest offer.
What happens next
With the dismissal of Vedanta’s plea, the path is now clear for the Adani Group to proceed with the acquisition of Jaiprakash Associates.
However, Vedanta still has the option to challenge the ruling before the Supreme Court.
Conclusion
The NCLAT ruling reinforces the authority of creditors in insolvency proceedings and underscores the importance of procedural compliance over last-minute bid revisions.
For the Adani Group, the decision marks a significant step towards acquiring a major infrastructure and real estate portfolio, while for Vedanta, it represents a setback in its expansion ambitions.
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