The Supreme Court on Monday declined to stay the Adani Group’s ₹14,535 crore resolution plan for the acquisition of Jaiprakash Associates Ltd (JAL), providing a significant, albeit monitored, go-ahead for the conglomerate. While the court did not interfere with the previous orders of the National Company Law Appellate Tribunal (NCLAT), it placed a temporary check on the ailing company’s management.
A Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi ruled that the monitoring committee of JAL is restrained from taking any “major policy decisions” without prior approval from the NCLAT. This interim measure ensures the status quo is maintained until a final judicial determination is reached.
The top court’s intervention comes in response to an appeal filed by mining giant Vedanta Ltd. Vedanta had moved the Supreme Court on March 25, challenging an NCLAT decision from the previous day that refused to halt the implementation of the Adani Group’s bid.
Vedanta, which was also in the race to acquire JAL through the corporate insolvency resolution process, has filed two separate appeals before the NCLAT. The first challenges the validity of the resolution plan itself, while the second contests the approval granted by the Committee of Creditors (CoC) and the National Company Law Tribunal (NCLT).
The dispute traces back to November last year when the lenders of the debt-ridden Jaiprakash Associates Ltd approved the resolution plan submitted by Adani Enterprises Ltd. This plan subsequently received the seal of approval from the NCLT, prompting Vedanta to seek legal recourse.
In the proceedings on Monday, the Supreme Court directed both Vedanta Ltd and Adani Enterprises Ltd to present their contentions and counterclaims before the NCLAT. The Bench emphasized the need for a swift resolution, asking the appellate tribunal to decide the plea and the counter-petition expeditiously.
The NCLAT is scheduled to commence the final hearing on this high-stakes acquisition row on April 10. The appellate tribunal has already sought a response from the CoC of JAL regarding Vedanta’s challenges.
Until the April 10 hearing concludes and a decision is rendered, the Adani Group’s takeover proceeds under the watchful eye of the judiciary, with the restriction on major policy decisions acting as a safeguard for the insolvency process.
