Supreme Court Refuses to Stay Adani Plan for Jaiprakash, NCLAT Hearing Soon

The Supreme Court of India on Monday declined to stay the resolution plan of Adani Enterprises for Jaiprakash Associates, while urging the National Company Law Appellate Tribunal to hear Vedanta Ltd’s appeal on priority. The matter is now expected to be taken up on April 10.

Key Developments

The apex court refused to interfere with NCLAT’s interim order, noting that the appellate tribunal had already scheduled Vedanta’s appeal for hearing.

The bench led by Chief Justice Surya Kant and Justice Joymalya Bagchi emphasized that it would not intervene at this stage, as the matter is still under consideration.

However, the Court requested NCLAT to expedite proceedings and, if necessary, hear the case immediately after April 10.

It also directed that any major policy decision by the monitoring committee must be approved by NCLAT first.

Detailed Coverage

Senior advocate Kapil Sibal, representing Vedanta, argued that his client’s bid of ₹17,926.21 crore was significantly higher than Adani’s offer of around ₹14,000 crore. He stressed that creditors would benefit more under Vedanta’s proposal.

Sibal maintained that the Committee of Creditors (CoC) was approving a lower bid, potentially causing a loss of nearly ₹3,000 crore.

Responding to this, Solicitor General Tushar Mehta stated that the actual difference was closer to ₹500 crore and that implementation of the plan would take at least 50 days.

Meanwhile, Mukul Rohatgi, appearing for Adani Enterprises, argued that Vedanta had not raised a substantive challenge to the resolution plan.

Senior advocate Abhishek Manu Singhvi, representing the resolution professional, claimed Vedanta’s revised offer came after the bidding process had effectively closed.

Background & Context

Jaiprakash Associates entered insolvency proceedings in June 2024 following a petition by ICICI Bank after prolonged financial distress.

During the Corporate Insolvency Resolution Process (CIRP), multiple bids were received. Despite Vedanta’s higher overall bid, the CoC approved Adani’s plan citing stronger upfront payment terms.

The plan secured 93.81% approval from creditors and was cleared by the National Company Law Tribunal (NCLT) in March 2026.

Vedanta challenged the decision, arguing that its higher net asset value offer was ignored, violating the Insolvency and Bankruptcy Code’s principle of value maximization.

Official Statements / Sources

The Court clarified it would not examine the merits of allegations at this stage.

Officials indicated that the implementation of the resolution plan would remain subject to the final outcome of Vedanta’s appeal before NCLAT.

Impact Analysis

This case has significant implications for India’s insolvency framework:

Raises questions on how CoC prioritizes bids—value vs upfront liquidity
Could influence future corporate insolvency bidding strategies
Impacts creditor recovery expectations in large insolvency cases
May shape judicial oversight in CIRP processes

The outcome could set a precedent for how competing bids are evaluated under the Insolvency and Bankruptcy Code (IBC).

What Happens Next

The NCLAT is expected to hear Vedanta’s appeal on April 10 or immediately thereafter.

If arguments conclude quickly, a decision on whether Adani’s plan proceeds without changes could follow soon.

Further legal escalation to the Supreme Court remains possible depending on the outcome.

Conclusion

The Supreme Court’s refusal to halt Adani’s resolution plan keeps the process moving forward, while ensuring Vedanta’s objections are heard promptly. The final outcome could redefine key principles in India’s insolvency regime.

Key Highlights

Supreme Court declines to stay Adani’s Jaiprakash resolution plan
NCLAT directed to hear Vedanta’s appeal on priority
Vedanta claims higher bid; CoC preferred Adani’s upfront payment
Court avoids interference, calls it an interim stage
Implementation may take at least 50 days
Monitoring committee must seek NCLAT approval for major decisions
Case could impact future insolvency resolutions in India

FAQs

1. What did the Supreme Court decide in the Adani-Jaiprakash case?

The Court refused to stay Adani’s resolution plan and asked NCLAT to fast-track Vedanta’s appeal.

2. Why is Vedanta challenging the decision?

Vedanta claims its higher bid was ignored, violating value maximization principles under the IBC.

3. What is the role of NCLAT in this case?

NCLAT is hearing Vedanta’s appeal against the approval of Adani’s resolution plan.

4. How much were the competing bids?

Vedanta offered around ₹17,926 crore, while Adani’s plan is valued near ₹14,000–15,000 crore.

5. What is the significance of this case?

It may set a precedent on how creditor committees evaluate bids in insolvency cases.

6. What happens next?

NCLAT will hear the case on April 10, and its decision will determine the future of the resolution plan.

Supreme Court Refuses to Stay Adani Plan for Jaiprakash, NCLAT Hearing Soon