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News Topical, Digital Desk : Indian mining company Vedanta Limited has approached the Supreme Court seeking an immediate stay on the resolution plan of Adani Group's Jaiprakash Associates (Jaipee). Vedanta has challenged the March 24 decision of the National Company Law Appellate Tribunal (NCLAT). The NCLAT had allowed Adani's plan to proceed, challenging which Vedanta has now approached the Supreme Court. Vedanta argues that its own bid was at least ₹1,000 crore better than Adani's.
The company argues that the CoC should have chosen the highest-valued bidder. If Adani's plan is implemented, Vedanta's petition will be rendered ineffective, and therefore, a stay should be imposed immediately.
What is the whole matter?
Jaiprakash Associates is undergoing insolvency proceedings. On March 17, the NCLT Allahabad bench approved Adani Enterprises' ₹14,535 crore resolution plan. Subsequently, in November, the Committee of Creditors (CoC) approved Adani's plan with an 89% vote. Although Vedanta and Dalmia Bharat were also bidding, Adani emerged as the highest bidder.
Vedanta's argument
- Vedanta says its bid was worth about ₹1,000 crore more than Adani's bid.
- The company alleges that the lenders chose the lower bid, which is against the objective of the Insolvency and Bankruptcy Code (IBC), that is, to ensure maximum asset value.
The Supreme Court is now expected to hear this petition soon. This decision could have implications not only for Jaypee's case but also for other future bankruptcy cases.
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