The National Company Law Appellate Tribunal (NCLAT) on Monday dismissed two petitions filed by Vedanta Ltd challenging the selection of Adani Enterprises for the debt-ridden Jaiprakash Associates Ltd (JAL). A two-member bench comprising Chairperson Ashok Bhushan and Member (Technical) Barun Mitra stated, 'No grounds have been made out by the appellant (Vedanta) to interfere with the decision of the adjudicating authority (NCLT)... Both appeals are dismissed.'
Commercial Wisdom of CoC Upheld
The tribunal observed that the Committee of Creditors' (CoC) decision was based on an overall consideration of the respective resolution plans and was taken in its commercial wisdom. It found no material irregularity committed by the resolution professional during the plan resolution process. Dismissing Vedanta's plea questioning the evaluation metrics, NCLAT said that the CoC's decision not to approve Vedanta's plan, despite a higher plan value of Rs 3,400 crore and a net present value (NPV) of Rs 500 crore compared to Adani's plan, could not be deemed arbitrary or perverse.
Background of the Case
The NCLT's Allahabad bench had on March 17 approved Adani Enterprises' Rs 14,535-crore bid to acquire JAL through the insolvency process. Vedanta challenged this before NCLAT, which on March 24 declined an interim stay but noted that the plan would be subject to the outcome of the appeals filed by the Anil Agarwal-led Vedanta Group. The CoC maintained that the process complied with all Insolvency and Bankruptcy Code rules and that no bidder had a guaranteed right to win, even if offering the highest value.
About Jaiprakash Associates
JAL, which holds high-quality assets and business interests spanning real estate, cement manufacturing, hospitality, power, and engineering and construction, was admitted to the Corporate Insolvency Resolution Process (CIRP) in June 2024 after defaulting on loans amounting to Rs 57,185 crore.
