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NEW DELHI – In a significant boost to the Adani Group’s expansion into the infrastructure and cement sectors, the Supreme Court of India on Monday refused to stall the ₹14,535 crore acquisition of debt-ridden Jaiprakash Associates Limited (JAL).
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi declined to interfere with the National Company Law Appellate Tribunal’s (NCLAT) previous refusal to stay the deal. While the court allowed the resolution plan to proceed, it introduced a safeguard by restraining JAL’s monitoring committee from making any “major policy decisions” without prior approval from the NCLAT.
The Legal Tug-of-War
The challenge was brought forward by mining giant Vedanta Ltd, an unsuccessful bidder in the insolvency process. Vedanta moved the apex court on March 25, seeking an immediate stay on the implementation of the resolution plan approved by the National Company Law Tribunal (NCLT).
Vedanta argued that the bidding process lacked transparency, claiming its own offer was financially competitive. However, the Committee of Creditors (CoC) and the NCLT had previously favored Adani Enterprises Ltd, citing a superior upfront cash component of approximately ₹6,000 crore and a more efficient implementation timeline.
Key Highlights of the Ruling:
No Interim Stay: The Supreme Court maintained that since the NCLAT is already scheduled to hear the final arguments on April 10, 2026, there was no reason to interfere at this stage.
Expedited Hearing: The apex court directed the NCLAT to decide the dispute between Adani and Vedanta “expeditiously” on an out-of-turn basis.
Operational Restrictions: To protect the interests of all stakeholders, the court ruled that the monitoring committee overseeing JAL must seek NCLAT’s nod for any significant strategic shifts until a final verdict is reached.
Reversible Actions: The court noted that if the NCLAT eventually sets aside the resolution plan, actions taken in the interim—including the delisting of JAL—would be subject to reversal.
Market Impact
Following the news, shares of Adani Enterprises saw a positive uptick, jumping nearly 3% during Monday’s trading session. Investors appear optimistic about the Group’s ability to integrate JAL’s massive asset base, which includes significant cement manufacturing capacity and land parcels.
The NCLAT will now commence the final hearing on April 10, 2026, to determine whether the acquisition follows the legal mandates of the Insolvency and Bankruptcy Code (IBC). For now, the Adani Group remains in the driver’s seat of one of the year’s largest corporate recoveries.
