Supreme Court Declines to Stay Adani’s ₹14,543 Crore JAL Resolution Plan, Directs Expedited Hearing

Top court allows implementation to proceed but mandates oversight and fast-tracks Vedanta’s challenge

New Delhi/Mumbai, April 2026 : The Supreme Court on Monday refused to halt the implementation of Adani Enterprises Ltd’s ₹14,543 crore resolution plan for the debt-laden Jaiprakash Associates Ltd (JAL), delivering a significant development in one of India’s most closely watched insolvency cases. The decision came as a setback for Vedanta Ltd, which had challenged the approval of Adani’s bid, alleging unfair treatment during the bidding process.

A bench led by Chief Justice Surya Kant and Justice Joymalya Bagchi declined to interfere with earlier rulings of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), both of which had cleared the way for the plan’s rollout. However, the apex court introduced a layer of caution by directing the monitoring committee overseeing the resolution process to seek prior approval from the NCLAT before taking any major policy decisions.

The court also instructed the NCLAT to hear Vedanta’s appeal on a priority basis, with the next hearing scheduled for April 10. This move ensures that while the implementation of the resolution plan can proceed, it will remain subject to judicial scrutiny.

A Dispute Over Value and Fairness

At the core of the legal battle is a disagreement over how value should be assessed under India’s Insolvency and Bankruptcy Code (IBC). Vedanta, which emerged as a competing bidder, argued that its offer was superior and that lenders failed to maximize value for creditors.

Represented by senior advocate Kapil Sibal, Vedanta told the court that its bid of ₹17,926 crore was significantly higher than Adani’s proposal. The company claimed that despite offering better financial terms, its bid was overlooked, resulting in lenders accepting nearly ₹3,000 crore less in value.

Sibal emphasized the irreversible consequences of implementing the resolution plan, noting that once payments are made to over 15,000 creditors and key steps such as delisting are executed, it would be extremely difficult to reverse the process if Vedanta ultimately succeeds in its challenge. He also highlighted Vedanta’s interest in acquiring marquee assets linked to JAL, including a Formula One circuit and other high-value infrastructure.

Lenders Defend Their Decision

The Committee of Creditors (CoC), however, strongly defended its decision to back Adani’s plan. Appearing for the lenders, Solicitor General Tushar Mehta argued that the difference between the bids was not as substantial as claimed and that Adani’s proposal offered advantages beyond headline value.

According to the CoC, resolution plans are evaluated on multiple parameters, including upfront cash recovery, feasibility, execution capability, and timeline for payments. Adani’s plan, they said, was preferred because it offered approximately ₹6,000 crore in upfront payments and a faster execution timeline of around two years, compared to Vedanta’s staggered payment schedule extending up to five years.

The lenders also rejected Vedanta’s revised offer submitted in November 2025, stating that it came after the bidding process had formally closed. Accepting it would have required reopening the process for all bidders, potentially delaying resolution further.

Judicial Backing for Commercial Wisdom

Both the NCLT and NCLAT had earlier upheld the CoC’s decision, reiterating the principle that the “commercial wisdom” of creditors is paramount under the IBC framework. In its March 17 order, the NCLT emphasized that judicial intervention is limited unless there is clear evidence of legal violations.

Adani’s resolution plan received overwhelming support from financial creditors, securing approximately 93.8% of the voting share—well above the statutory requirement. The National Asset Reconstruction Company Ltd (NARCL), the largest creditor, played a crucial role in backing the plan.

Scale and Significance of the Deal

The resolution of Jaiprakash Associates is significant not only due to the scale of debt involved—admitted claims stand at around ₹60,637 crore—but also because of the company’s valuable asset base. JAL holds nearly 4,000 acres of land across key locations such as Noida, Greater Noida, and the Yamuna Expressway, including premium developments like Jaypee Greens and the Jaypee International Sports City near the upcoming Noida International Airport.

In addition to real estate assets, the company also owns hotels, commercial properties, and cement capacity of around 6.5 million tonnes, making it an attractive acquisition for infrastructure-focused conglomerates.

Under Adani’s plan, the total value, including ₹800 crore earmarked for capital expenditure and working capital, stands at approximately ₹15,343 crore. This translates to a recovery of about 24% for creditors—a figure that has drawn both support and criticism.

What Lies Ahead

While the Supreme Court’s refusal to stay the plan allows Adani Enterprises to move forward, the requirement for NCLAT oversight ensures that the process remains under close watch. Vedanta has indicated that it will continue to pursue its legal challenge, maintaining that the bidding process lacked transparency and fairness.

The outcome of the upcoming NCLAT hearing could prove निर्णायक in shaping the final resolution. For now, the case highlights the delicate balance between ensuring timely resolution of stressed assets and maintaining fairness in competitive bidding under the IBC framework.

As one of the largest insolvency cases in recent times, the JAL resolution will likely set important precedents for how value, transparency, and creditor discretion are interpreted in India’s evolving bankruptcy regime.

Team Maverick