The Supreme Court on Monday declined to stay the resolution plan submitted by Adani Group for the acquisition of Jaiprakash Associates Ltd (JAL), while directing the National Company Law Appellate Tribunal (NCLAT) to hear on priority a challenge mounted by Vedanta Ltd.

The order allows the implementation of Adani’s resolution plan to proceed for now, even as the dispute over the bidding process remains unresolved.

Court declines interim relief

A bench of the Supreme Court refused to interfere with earlier orders passed by the National Company Law Tribunal (NCLT) and the NCLAT, both of which had declined to grant interim relief to Vedanta.

Instead of granting a stay, the court stressed the need for expeditious adjudication and asked the appellate tribunal to take up Vedanta’s appeal at the earliest. The bench also clarified that any major step taken in furtherance of the resolution plan would remain subject to the outcome of the pending proceedings before the NCLAT.

Vedanta challenges bid outcome

Vedanta has contested the approval of Adani’s resolution plan on the grounds that its own bid — reportedly higher in value — was not accepted by the committee of creditors (CoC).

The company has argued that this runs contrary to the core objective of the insolvency and bankruptcy code (IBC), which prioritises value maximisation for creditors. It has sought a reconsideration of the bidding outcome, alleging procedural and commercial inconsistencies in the selection process.

Creditors back Adani plan

However, lenders backed Adani’s proposal, citing its stronger execution profile. The plan is understood to offer higher upfront cash recovery and greater certainty in timelines, factors that weighed heavily in its favour despite Vedanta’s higher overall bid.

Under the IBC framework, the commercial wisdom of the CoC is given primacy, limiting judicial intervention unless clear irregularities are established.

What lies ahead

With the Supreme Court refusing interim intervention, the focus now shifts to the NCLAT, which is expected to hear Vedanta’s appeal shortly.

While Adani’s takeover of JAL moves forward in the interim, the final outcome will hinge on the appellate tribunal’s ruling — a decision that could have wider implications for how competing bids are evaluated under India’s insolvency regime.