Supreme Court declines to stay Adani plan for Jaiprakash Associates; asks NCLAT to hear Vedanta plea on priority

The Supreme Court on Monday refused to stay the implementation of Adani Enterprises’ resolution plan for Jaiprakash Associates Ltd (JAL), while directing the National Company Law Appellate Tribunal (NCLAT) to hear Vedanta Ltd’s challenge on an expedited basis on April 10.

A bench of the apex court declined to interfere with the NCLAT’s March 24 order, noting that the appeal filed by Vedanta is already listed for final hearing shortly. The court, however, issued key safeguards, directing that the monitoring committee overseeing JAL’s resolution must seek prior approval from the NCLAT before taking any major policy decisions. It also clarified that the implementation of the resolution plan will remain subject to the outcome of the appellate tribunal’s ruling.

Senior advocates Kapil Sibal and V. V. Giri appeared for Vedanta, while the committee of creditors (CoC) was represented by Solicitor General Tushar Mehta along with senior advocate Niranjan Reddy. Adani Enterprises was represented by senior advocates Mukul Rohatgi and Ritin Rai, alongside a legal team from Karanjawala & Co. Senior advocates Abhishek Manu Singhvi and Arun Kathpalia appeared for the resolution professional, while Vedanta was also represented by senior advocate Abhijeet Sinha.

The development marks the latest turn in a high-stakes insolvency battle, where Vedanta has challenged the approval of Adani Group’s ₹14,500–15,000 crore resolution plan for JAL, despite having submitted a higher bid of ₹16,726 crore. The appellate tribunal had earlier declined to grant an interim stay on the plan’s implementation but agreed to examine the merits of Vedanta’s challenge.

Vedanta has argued that the CoC failed to properly evaluate its superior financial offer, thereby undermining the core objective of the Insolvency and Bankruptcy Code—maximisation of value for stakeholders. It contended that the CoC’s “commercial wisdom” cannot justify acceptance of a lower bid, particularly when public money is at stake, and called for judicial scrutiny of the decision-making process.

In contrast, the resolution professional has defended the process, stating that the CoC adhered to the prescribed evaluation matrix and process note. According to the RP, the lenders exercised their commercial judgment after considering qualitative and quantitative aspects of competing bids, and their decision to approve Adani’s plan does not warrant interference.

Under the approved plan, Adani Enterprises has proposed payments exceeding ₹13,500 crore to secured financial creditors, including ₹6,005 crore upfront and ₹6,026.5 crore within two years. The plan also includes issuance of ₹1,500 crore in non-convertible debentures. Workmen and employees are to receive at least ₹10 crore or statutory dues, whichever is higher, while the Yamuna Expressway Industrial Development Authority is to be paid ₹1,067 crore, subject to legal outcomes.

The Adani Group has further committed to infuse up to ₹800 crore within 180 days towards working capital, capital expenditure and operational improvements.

The dispute has also spilled into the public domain, with Anil Agarwal, chairman of Vedanta Group, recently expressing disappointment over what he described as a reversal of a previously communicated outcome in the bidding process.

With the Supreme Court now mandating an expedited hearing, all eyes will be on the NCLAT’s April 10 proceedings, which are expected to play a crucial role in determining the fate of one of India’s most closely watched insolvency resolutions.

Also See: Vedanta Group chairman hints at ‘foulplay’ in Jaiprakash Associate resolution process