Case Note & Summary
The National Company Law Appellate Tribunal addressed two appeals filed by Vedanta Ltd., challenging the orders of the National Company Law Tribunal (NCLT) dated 17.03.2026, which rejected Vedanta's application and approved the Resolution Plan of Adani Enterprises Ltd. The insolvency proceedings against Jaiprakash Associates Ltd. commenced on 03.06.2024, initiated by ICICI Bank Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional (RP) conducted a Challenge Process to maximize asset value, resulting in multiple bids, with Vedanta emerging as the highest bidder at INR 12,505.85 crores. However, the Committee of Creditors (CoC) ultimately approved Adani's plan, which was lower in value. Vedanta contended that the CoC's decision was arbitrary and contrary to the IBC's objectives. The RP and CoC defended their actions, asserting compliance with the process and evaluation criteria. The NCLT found that Vedanta had locus to appeal but upheld the CoC's rejection of Vedanta's Addendum to its Resolution Plan, emphasizing adherence to the established process and the CoC's commercial wisdom in decision-making. The Tribunal concluded that the Evaluation Matrix used for assessing the plans was legally sound and aligned with the IBC's objectives, thereby dismissing Vedanta's appeals.
Headnote
A) Insolvency Law - Locus Standi - Unsuccessful Resolution Applicant's Right to Appeal - Insolvency and Bankruptcy Code, 2016, Section 61 - The Appellant was held to have locus to maintain the application as an unsuccessful Resolution Applicant. The Adjudicating Authority found no infirmity in this decision. (Paras 14-14). B) Insolvency Law - Evaluation of Resolution Plans - Validity of CoC's Decision - Insolvency and Bankruptcy Code, 2016, Section 30 - The CoC's decision to reject the Addendum was upheld as it was filed after the voting decision was made, violating the established process. The court emphasized the importance of adhering to the process to maintain fairness. (Paras 73-75). C) Insolvency Law - Commercial Wisdom of CoC - Evaluation Matrix Compliance - Insolvency and Bankruptcy Code, 2016, Section 30 - The Evaluation Matrix was deemed compliant with the legal framework and core objectives of the IBC. The court affirmed that the CoC's commercial wisdom in approving the Resolution Plan was justified based on the evaluation criteria. (Paras 102-102).
Issue of Consideration
Whether the Appellant, an unsuccessful Resolution Applicant, has locus to maintain the application and whether the rejection of the Addendum by the CoC was legal.
Final Decision
The Tribunal dismissed the appeals, affirming the NCLT's orders and upholding the CoC's decision to approve the Resolution Plan of Adani Enterprises Ltd. The rejection of the Appellant's Addendum was deemed valid as it violated procedural norms.
Law Points
- Insolvency
- Corporate Insolvency Resolution Process
- Evaluation Matrix
- Commercial Wisdom
- Addendum to Resolution Plan
