New Delhi, April 6 (NationPress) In a significant ruling against the Vedanta Group, the Supreme Court has opted not to halt the execution of Adani Enterprises' resolution strategy for the financially troubled Jaiprakash Associates Ltd. A bench led by Chief Justice (CJI) Surya Kant remarked that the insolvency case is already set for a conclusive hearing at the National Company Law Appellate Tribunal (NCLAT) on April 10, leading them to conclude that intervention at this point is unwarranted.

"Considering that the company appeals are scheduled for a final review before the NCLAT on April 10, we find no basis for interference," stated the bench, which also included Justice Joymalya Bagchi. They instructed the appellate tribunal to prioritize the case and continue hearings if necessary on the subsequent working day.

The Supreme Court also mandated that any significant policy actions by the monitoring committee during this period must be undertaken only after obtaining permission from the NCLAT, given the case's complexity and consequences.

Vedanta had approached the apex court seeking to suspend Adani Enterprises’ Rs 14,500-crore resolution strategy, arguing that the insolvency process lacked transparency and did not optimize value for creditors.

The company claimed to have presented a superior offer of Rs 16,726 crore and was initially recognized as the top bidder before the outcome was allegedly changed without sufficient justification.

It also criticized the decision-making approach of the Committee of Creditors, labeling the endorsement of Adani Enterprises’ plan as "unjust, opaque, and inequitable".

Conversely, the lenders defended their choice, asserting that the resolution plans under the Insolvency and Bankruptcy Code (IBC) are not determined solely by the highest financial bid. Other considerations, such as the upfront cash component, execution feasibility, and repayment timelines, are also pivotal.

According to them, Adani Enterprises’ proposal was favored due to a higher upfront payment of approximately Rs 6,000 crore and a reduced repayment timeframe of about two years.

They also pointed out that Vedanta’s updated bid was submitted after the bidding period had closed and could not be entertained without restarting the process.

Previously, the NCLAT had refused to grant temporary relief against the endorsement of Adani Enterprises’ resolution plan by the National Company Law Tribunal, permitting the insolvency process to advance while awaiting responses from various stakeholders.

Jaiprakash Associates Limited is currently undergoing insolvency proceedings under the IBC, 2016, due to loan defaults exceeding Rs 57,000 crore. The company has diversified interests in real estate, cement, power, and infrastructure, with significant assets including large township projects in Noida and Greater Noida, along with investments in expressways and power projects.

The proposed acquisition by entities of the Adani Group had previously been authorized by the Competition Commission of India (CCI), as mandated by the Competition Act, 2002, for such combinations.

Senior advocates Kapil Sibal and V.V. Giri represented Vedanta Ltd., while Solicitor General Tushar Mehta advocated for the Committee of Creditors (CoC). Adani Enterprises was represented by senior attorneys Mukul Rohatgi and Ritin Rai, supported by a team from Karanjawala & Co.