Adani Ports Bid for Insolvent Tuticorin Coal Terminal Rejected by NCLT

The Mumbai bench of the National Company Law Tribunal (NCLT) has dismissed a plea by Adani Ports and Special Economic Zone (APSEZ) to submit a delayed resolution plan for Tuticorin Coal Terminal, which is undergoing insolvency proceedings. According to an Economic Times report, the tribunal has instead ordered the resolution to proceed with the existing bid from Seapol Port or by seeking new proposals.

Tribunal Rejects Adani’s Late Resolution Plan

The division bench, consisting of judicial member KR Saji Kumar and technical member Anil Raj Chellan, observed that over four years had passed since the Expression of Interest was first issued in 2020. Tuticorin Coal Terminal entered the CIRP after defaulting on dues of nearly ₹90 crore, with total liabilities now exceeding ₹479 crore.

Adani Ports argued that its participation would promote value maximisation, as it was listed among the eligible bidders. However, the NCLT stressed the importance of timely participation, ruling that the process should proceed without accommodating delayed entries, even though the Committee of Creditors was open to evaluating Adani’s plan.

Background and Revival Efforts of the Terminal

Tuticorin Coal Terminal, a PPP project at VO Chidambaranar Port in Tamil Nadu, was commissioned in 2017 to handle coal for nearby power plants. Operations ceased in 2018 due to the closure of plants and an unsustainable 52.17 per cent revenue-sharing agreement.

Despite initial revival attempts, the terminal became India’s first port PPP to head for liquidation. In July 2024, the port authority partnered with JSW for redevelopment under a 30-year DBFOT model. Though Adani Ports showed interest, it did not submit a plan in time and faced setbacks.

Read More: NCLT Approves Merger Of Adani Enterprises Arm With Adani Power’s Mahan Energen

Adani Ports Share Performance 

As of May 13, 2025, at 12:30 PM,  Adani Ports share price is trading at ₹1,381.40 per share, a surge of 1.42% from the previous closing price. Over the past month, the stock has surged by 14.09%.

Conclusion

The NCLT’s ruling underscores the necessity for adherence to procedural timelines in insolvency matters. With Seapol Port's proposal under review and the asset showing signs of revival, the resolution process remains open to potential new bidders.

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