Supreme Court Declines to Stay Adani’s Jaypee Takeover; Orders NCLAT to Fast-Track Vedanta’s Appeal

New Delhi, April 6, 2026: The Supreme Court on Monday refused to entertain an appeal by Vedanta against the implementation of a resolution plan for the insolvent Jaypee Associates, which saw Adani Enterprises emerge as the successful bidder. While declining to stay the handover, a bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi directed the National Company Law Appellate Tribunal (NCLAT) to expedite its final decision on the validity of the Committee of Creditors’ (CoC) choice, media reports said.

The legal battle stems from Vedanta’s contention that its bid for the debt-ridden firm was the highest and that the selection process was flawed. Senior advocate Kapil Sibal, appearing for Vedanta, argued that allowing the plan to proceed would lead to the delisting of Jaypee and the payout of creditors, potentially rendering Vedanta’s ongoing appeal in the NCLAT an “academic exercise.” However, the bench maintained that the selection of a bidder falls under the “commercial wisdom” of the CoC, a domain typically reserved for financial experts rather than the judiciary.

To balance the interests of the competing parties, the Supreme Court ruled that the Monitoring Committee overseeing the transition must obtain prior approval from the NCLAT before making any “major policy decisions.” This directive ensures oversight while the implementation of the Insolvency and Bankruptcy Code (IBC) process continues. Solicitor General Tushar Mehta, representing the CoC, noted that the implementation would take at least 50 days, providing the NCLAT sufficient time to resolve the dispute.

The court further addressed concerns regarding the potential delisting of Jaypee Associates. It noted that the CoC has already provided an undertaking to the NCLAT ensuring that if the delisting proceeds under the current plan but the NCLAT later sets that plan aside, all delisting actions will be automatically cancelled. This provision serves as a safeguard for the status quo of the corporate debtor pending a final legal verdict.

With the NCLAT scheduled to begin final hearings on April 10, the Supreme Court emphasized the need for a swift resolution. Both Vedanta and Adani have pledged to cooperate for an early adjudication. “Having regard to the nature of the issues involved and the consequences attached to them, we will request NCLAT to conclude arguments at the earliest,” the bench stated, affirming that Vedanta’s interests remain protected as the resolution plan’s implementation remains subject to the appellate tribunal’s final decision.

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