Adani’s victory, Vedanta’s defeat, paving the way for the acquisition of JP Associates; Supreme Court refuses to intervene

Supreme Court Vedanta vs Adani Jaypee Associates: Anil Aggarwal’s company Vedanta has suffered a setback in the Supreme Court. The court has refused to stay Adani Group’s resolution plan for Jaypee Group company Jaiprakash Associates. NCLT had approved the resolution plan of Rs 14,500 crore of Adani Enterprises for this company which was going through the bankruptcy process. But Anil Aggarwal’s company Vedanta had challenged it in the Supreme Court and demanded a ban on this takeover.

The bench of Chief Justice Surya Kant refused to interfere in this matter. The court said that the final hearing of the case is to be held in NCLAT on April 10, so there is no reason to interfere in it. Also, the court has asked the tribunal to hear the case on out-of-turn basis. The court says that if the arguments are not completed in a day then the hearing should continue on the next working day.

The company had reached the Supreme Court on March 30

The Supreme Court also said that if the monitoring committee takes any major policy decision, it can do so after taking the stand of NCLAT. Vedanta Group had approached the Supreme Court in this matter on March 30. He claims that his bid was earlier declared the highest and he was informed about it in writing. But that decision was later changed without any explanation.

Vedanta had bid Rs 16,726 crore, which was higher than Adani Enterprises’ bid of Rs 14,535 crore. He claims that his bid should have been given priority. He had filed several appeals questioning the validity of Adani Group’s plan as well as the process of the Committee of Creditors and the Educating Authority.

Refusal to stay NCLT’s decision

Earlier, NCLAT had refused to grant an interim stay on the decision of NCLT to approve the resolution plan of Adani Enterprises. NCLAT had sought response from the lenders in this matter and while continuing the insolvency process, the next hearing of the case was fixed for April.

Banks justified their decision

The banks justified their decision saying that in this Insolvency and Bankruptcy Code All the rules were followed. His argument was that the selection of the resolution plan was not based only on the highest bid but other factors like upfront cash and payment timeline were also taken into consideration. Adani’s proposal was given preference because it had an upfront provision of Rs 6,000 crore and a two-year schedule for faster repayment.

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Creditors had rejected the offer

On the other hand, Vedanta’s payment schedule was for five years. The creditors had also rejected Vedanta’s revised offer. He said that it was submitted after the deadline and if it had been accepted, the entire process would have had to be started again.