Adani Power Secures NCLAT Win for ₹4,000 Cr Vidarbha Industries Acquisition

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AuthorVihaan Mehta|Published at:
Adani Power Secures NCLAT Win for ₹4,000 Cr Vidarbha Industries Acquisition
Overview

Adani Power Ltd's ₹4,000 crore acquisition of Vidarbha Industries Power Ltd has been upheld by the National Company Law Appellate Tribunal (NCLAT). The tribunal dismissed objections from Western Coalfields and an employee, confirming the National Company Law Tribunal's earlier approval. This ruling solidifies Adani's position as India's largest private thermal power producer and clears a significant hurdle in the acquisition process.

NCLAT Upholds Adani Power's ₹4,000 Crore Vidarbha Acquisition

The National Company Law Appellate Tribunal (NCLAT) has finalized Adani Power Ltd's acquisition of Vidarbha Industries Power Ltd (VIPL), confirming the ₹4,000 crore resolution plan. This decision overrides appeals filed by Western Coalfields and an employee of the debt-ridden VIPL, clearing a major regulatory obstacle for India's largest private thermal power producer.

Legal Objections Dismissed

The appellate tribunal found no merit in the challenges presented, stating they did not demonstrate any violation of the Insolvency & Bankruptcy Code (IBC). Petitioners had argued that Adani Power's resolution plan was approved beyond the stipulated 180-day period for corporate insolvency resolution processes (CIRP). However, the NCLAT noted that the Committee of Creditors (CoC) had approved the resolution plan in February 2025, well within the 180-day window that commenced on September 30, 2024. The tribunal also pointed out that the approved plan was submitted to the National Company Law Tribunal (NCLT) on March 11, 2025, further negating timeline violation claims.

Adherence to Timelines and Code Provisions

Adani Power's counsel successfully argued that the company's resolution plan, including modifications approved on April 1, 2025, complied with Section 30(2) of the IBC. The NCLAT concurred, stating that the plan's approval by the CoC in February 2025 and its subsequent submission to the NCLT were within the prescribed legal frameworks. This judicial backing reinforces the validity of Adani Power's strategic expansion through the acquisition of distressed assets.

Creditor Rights and Essar Steel Precedent

The ruling also touched upon the equitable treatment of creditors. The NCLAT affirmed that financial and operational creditors are not required to receive identical payments under a resolution plan, referencing the Supreme Court's stance in the Essar Steel case. This principle allows for differential treatment, acknowledging that 'unequals cannot be treated equally', a crucial point in complex insolvency proceedings.

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