NCLAT Upholds Adani Power's ₹4,000 Crore Resolution Plan for Vidarbha Industries

The National Company Law Appellate Tribunal (NCLAT) has upheld Adani Power's ₹4,000 crore resolution plan for Vidarbha Industries Power Ltd, dismissing appeals challenging the plan's approval timeline and operational creditor payouts under the Insolvency and Bankruptcy Code (IBC), as per news reports. 

Resolution Plan Approval and Challenges 

On June 18, 2025, the National Company Law Tribunal (NCLT) Mumbai Bench approved Adani Power's resolution plan for Vidarbha Industries. Western Coalfields Ltd, an operational creditor with claims of ₹502.58 crore, contested the plan's approval, arguing it was sanctioned post the 180-day corporate insolvency resolution process (CIRP) period stipulated by Section 12 of the IBC. 

The NCLAT, however, dismissed this contention, confirming that the Committee of Creditors (CoC) had approved the plan in February 2025, well before the March 28, 2025 deadline. 

Modifications and Creditor Payouts 

Adani Power made a modification to the plan on April 1, 2025, which extinguished residual operational debt instead of converting it into equity.  

The tribunal upheld this change, stating it was permissible under a clause in the approved plan allowing alterations to the acquisition structure, provided stakeholder payouts remained unchanged. 

Read More: Power Discoms Net ₹2,701 Crore Profit in FY25, Says Ministry! 

Employee Representative's Appeal 

An employee representative challenged the allocation of only ₹1 crore to operational creditors, including employees, against admitted operational claims exceeding ₹550 crore.  

The tribunal ruled that the distribution did not violate Section 30(2)(b) of the IBC, noting that the liquidation value of operational creditors was nil, as the company's liquidation value was insufficient to meet secured financial creditors’ claims. 

Adani Power Share Price Performance  

As of January 20, 2026, at 9:25 AM, Adani Power share price on NSE was trading at ₹141.40 up by 0.60% from the previous closing price. 

Conclusion 

The NCLAT's decision to uphold Adani Power's resolution plan for Vidarbha Industries Power Ltd underscores the tribunal's adherence to statutory timelines and compliance with the IBC. The tribunal's dismissal of appeals highlights the legal framework's flexibility in handling complex insolvency cases. 

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