NCLAT reserves order in Jaiprakash Associates insolvency case

Mumbai: The principal bench of the National Company Law Tribunal (NCLAT) on Wednesday reserved its verdict in the Jaiprakash Associates Ltd (JAL) bankruptcy case, in which mining firm Vedanta Ltd had challenged the resolution plan submitted by Gautam Adani-led Adani Enterprises.

On April 6, a Supreme Court bench led by Chief Justice Surya Kant and Justice Joymalya Bagchi directed the NCLAT to hear the matter urgently.

The bench, headed by Justice Ashok Bhushan, said the arguments were concluded and the verdict was reserved.

Senior advocate Abhijeet Sinha, representing Vedanta, said the case raises broader questions about how the IBC should be implemented and to what extent the committee of creditors (CoC) should operate under “commercial wisdom”.

On Monday, Solicitor General Tushar Mehta, speaking on behalf of the CoC before the NCLAT, said a possible information leak might have prompted Vedanta to reconsider its bid for the bankrupt firm.

Senior Advocate Abhishek Manu Singhvi, representing the resolution professional on Friday, said, “One of the biggest methods of drawing attention to some big sensational issues is to suggest that we (resolution professionals) should declare Mr. (Abhijeet) Sinha’s client (Vedanta) as the best, highest or most suitable and then suddenly change it. The real basis of this presentation… is as if I had declared you as the highest and then changed it. If that were to happen it would not be fair and totally lacks basic facts.”

Vedanta dismissed the allegations as “baseless” and said the company “did not conceal any documents and submitted everything to the court.”

JAL enters bankruptcy proceedings in 2024. ₹We owe ₹50,000 crore to creditors.

The competition for JAL’s assets includes around 4,000 acres of land in Noida, Greater Noida and along the Yamuna Expressway, along with hotels, commercial assets, cement capacity and a Formula 1 race track.

Adani Enterprises’ resolution plan was approved by the Allahabad bench of the National Company Law Tribunal (NCLT) on March 17, following which Vedanta approached the NCLAT and the Supreme Court seeking a stay of the decision.