NCLAT Directs Vedanta to Implead Adani in Appeal Over Jaiprakash Associates Acquisition

The National Company Law Appellate Tribunal (NCLAT) has directed Vedanta Group to include Adani Group as a party in its appeals challenging the approval of Jaiprakash Associates Ltd’s acquisition.

The development follows Vedanta’s challenge to the National Company Law Tribunal (NCLT) order that cleared Adani Enterprises’ bid. The case highlights ongoing legal scrutiny in high-value insolvency resolutions.

NCLAT Procedural Direction

A two-member bench of the appellate tribunal instructed Vedanta to formally serve notice to Adani Enterprises and include it in the proceedings. The tribunal noted that it cannot issue any order without hearing all concerned parties.

The matter has been adjourned and is scheduled for the next hearing on Tuesday, allowing time for procedural compliance.

Vedanta’s Appeal Against NCLT Order

Vedanta has filed two separate appeals before the tribunal. One challenges the validity of the resolution plan itself, while the other questions its approval by the Committee of Creditors (CoC) and the NCLT.

The appeals arise after the NCLT’s Allahabad bench approved Adani Enterprises’ ₹14,535 crore bid to acquire Jaiprakash Associates through the insolvency process.

Background of the Bidding Process

Vedanta, Adani Enterprises, and Dalmia Bharat were among the key bidders for Jaiprakash Associates Ltd (JAL). The CoC ultimately approved Adani’s proposal in November, with the bid receiving a significant majority of creditor votes.

Adani’s plan was preferred due to factors such as upfront payment commitments and a shorter execution timeline. In contrast, Vedanta’s proposal involved a longer payment schedule.

Lenders’ Rationale and Process Defence

The Committee of Creditors has maintained that the selection process followed all provisions under the Insolvency and Bankruptcy Code (IBC). According to lenders, evaluation was based on multiple criteria, including financial structure, feasibility, and implementation timelines, rather than just the total bid value.

They also stated that Vedanta’s revised offer was submitted after the bidding process had concluded, and accepting it would have required restarting the entire process.

Profile of Jaiprakash Associates Ltd

Jaiprakash Associates Ltd has a diversified portfolio, including real estate, cement manufacturing, hospitality, power, and infrastructure.

Its assets include large residential developments in the National Capital Region, commercial properties, hotel assets across multiple cities, and cement plants in Madhya Pradesh and Uttar Pradesh. The company was admitted into insolvency proceedings in June 2024 following loan defaults exceeding ₹57,000 crore.

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Conclusion

The NCLAT’s directive to include Adani Group in the appeal reflects procedural requirements in insolvency litigation. The outcome of the case will depend on further hearings, as the tribunal reviews Vedanta’s objections alongside the approved resolution plan.

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