NCLAT Rejects Vedanta’s Challenge, Clears Path for Adani’s ₹14,535-Crore Takeover of JAL
New Delhi, May 6, 2026: The National Company Law Appellate Tribunal (NCLAT) has dismissed two petitions filed by Vedanta Ltd, upholding the selection of Adani Enterprises as the successful bidder for the debt-ridden Jaiprakash Associates Ltd (JAL). A two-member bench, comprising Chairperson Ashok Bhushan and Member Technical Barun Mitra, ruled on Monday that there were no valid reasons to overturn the prior decision made by the National Company Law Tribunal (NCLT). According to media reports, in their judgment, the bench 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.”
The legal challenge centered on the evaluation metrics used by the Committee of Creditors (CoC) during the corporate insolvency resolution process. Vedanta argued that its bid featured a higher plan value of ₹3,400 crore and a Net Present Value (NPV) of ₹500 crore compared to Adani’s proposal. However, the NCLAT clarified that a higher monetary offer does not automatically guarantee a win under the Insolvency and Bankruptcy Code (IBC). The tribunal noted that the “decision of CoC not approving the resolution plan of the appellant with a higher plan value of Rs 3,400 crore and NPV (net present value) of Rs 500 crore as compared to plan of respondent No 3 (Adani) cannot be said to be arbitrary or perverse.”
The appellate tribunal further emphasized that the creditors acted within their legal rights when choosing Adani’s ₹14,535-crore bid. The judgment highlighted that the CoC’s decision was based on the “overall consideration of the respective resolution plan and was taken in its commercial wisdom… (There was) no material irregularity committed by resolution professionals while conducting the plan resolution process.” This ruling follows an earlier decision on March 24, where the NCLAT had declined to grant an interim stay on the resolution plan, though it noted the finality of the deal would depend on the outcome of Vedanta’s appeals.
Jaiprakash Associates Ltd, a conglomerate with interests in cement, real estate, hospitality, and power, was admitted into the insolvency process in June 2024 following a default on loans totaling ₹57,185 crore. Throughout the proceedings, the CoC maintained that the selection process complied strictly with IBC rules, asserting that the commercial viability and long-term feasibility of a plan outweigh simple valuation. With the NCLAT’s dismissal of Vedanta’s pleas, the path is now clear for Adani Enterprises to move forward with the acquisition of JAL’s high-quality asset portfolio.
