NCLAT Reserves Order on Vedanta vs. Adani Insolvency Bidding Battle

The National Company Law Appellate Tribunal (NCLAT) has reserved its decision regarding Vedanta's challenge to Adani Enterprises' successful bid for Jaiprakash Associates Ltd (JAL). A two-member bench, led by Chairperson Ashok Bhushan and Member Technical Barun Mitra, ended its hearing after listening to arguments from all involved parties, including Vedanta, Adani Enterprises, the Resolution Professional, and the Committee of Creditors (CoC).

Both parties have been instructed to submit their written arguments within the next two days. Vedanta's counsel raised concerns over the evaluation criteria used by JAL lenders, claiming that despite Vedanta's bid being higher at Rs 17,926 crore compared to Adani's Rs 14,535 crore offer, Adani was favored. NCLAT had previously refused to impose an interim stay on the Vedanta Group's plea, though it noted any major plans by the monitoring committee must receive Tribunal approval.

The case reached the Supreme Court, which declined to halt proceedings but emphasized adherence to protocol. Adani’s bid succeeded with 89% creditor votes, with the CoC justifying the decision by highlighting compliance with Insolvency and Bankruptcy Code rules, emphasizing that bids are assessed on cash upfront, feasibility, and execution, not just headline value. The CoC's decision comes amid JAL's default on loans totaling Rs 57,185 crore, despite holding valuable assets across multiple sectors.