Supreme Court Upholds NCLAT Decision on Adani's Takeover of Jaypee Group Assets

The Supreme Court has decided not to interfere with the NCLAT's ruling that rejected Adani Enterprises' bid for the insolvent Jaypee group's assets. This decision comes amidst a legal challenge from Vedanta Limited, which claims its offer was superior. The court has instructed the NCLAT to expedite its review of the case, which centers on the approval process of the bids. As the legal battle unfolds, both companies prepare to present their arguments in the upcoming hearings. This case highlights the complexities of corporate insolvency and the competitive nature of asset acquisition in such scenarios.

By Narendra Chaudhary Apr 6, 2026, 16:22 IST

Supreme Court's Ruling on Adani's Bid

On Monday, the Supreme Court declined to intervene in a ruling by the National Company Law Appellate Tribunal (NCLAT) that dismissed a proposed acquisition of the insolvent Jaypee group's assets by Gautam Adani's Adani Enterprises.

A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi was reviewing a petition filed by Vedanta Limited on March 25, which sought to halt the takeover bid. The court instructed the NCLAT to expedite its decision on the matter.

This petition came shortly after the NCLAT refused to impose an interim stay on the National Company Law Tribunal's (NCLT) endorsement of Adani Enterprises' resolution plan.

The NCLT serves as the initial quasi-judicial authority established under the Companies Act of 2013 to resolve corporate disputes and insolvency issues, while the NCLAT acts as the appellate body for reviewing these decisions.

The core of the legal contention lies in the approval given to Adani's bid by the Committee of Creditors, which is responsible for decision-making in the Corporate Insolvency Resolution Process established under the Insolvency and Bankruptcy Code of 2016.

Following the NCLT's approval, Vedanta, led by industrialist Anil Agarwal, contended that its bid for Jaiprakash Associates Limited was superior and raised concerns regarding the transparency of the bidding process.

During the proceedings on Monday, the Supreme Court prohibited the monitoring committee of Jaiprakash Associates Limited from making significant policy decisions without the NCLAT's consent.

The bench also directed both Vedanta and Adani Enterprises to present their arguments and counterclaims before the NCLAT, which is set to begin the final hearing on April 10.

Background of the Dispute

The conflict centers on the resolution process of Jaiprakash Associates Limited, which entered insolvency in June 2024 after defaulting on loans exceeding ₹57,000 crore.

Both Vedanta and Adani Enterprises submitted competing bids, with Vedanta offering ₹16,726 crore, surpassing Adani's ₹14,535 crore, according to reports presented to the appellate tribunal.

Despite Vedanta's higher offer, the Committee of Creditors approved Adani's proposal, which included approximately ₹6,000 crore upfront and a quicker repayment schedule of around two years, compared to Vedanta's five-year timeline.

Reports indicate that Vedanta's initial bid was ₹17,000 crore, which included about ₹4,000 crore in upfront cash, with the remainder payable over six years.

On March 29, Agarwal claimed on social media that his company was initially recognized as the highest bidder during the insolvency process but later faced a change in the outcome.

He emphasized that Vedanta had no emotional attachment to the asset and would pursue the matter through the appropriate legal channels.

However, creditors have asserted that under the Insolvency and Bankruptcy Code, bids are evaluated not solely on value but also on factors like upfront cash, feasibility of execution, and payment timelines.

They reportedly dismissed Vedanta's revised offer, stating it was submitted after the bidding deadline and could not be considered without restarting the bidding process.

Jaiprakash Associates Limited possesses a substantial portfolio, including real estate projects in Noida and Greater Noida, infrastructure assets, cement production capacity, and developments like Jaypee Greens and the Jaypee International Sports City near Jewar airport.