The ruling also cited the Supreme Court’s Essar Steel judgment, stating that financial and operational creditors need not be treated equally under a resolution plan.
Insolvency appellate tribunal NCLAT has upheld the acquisition of Vidarbha Industries Power by Adani Power Ltd (APL), India’s largest private thermal power producer.
The National Company Law Appellate Tribunal (NCLAT) has confirmed the Mumbai-bench of NCLT’s order, which, on June 18, 2025, approved the Rs 4,000-crore resolution plan of the Adani Group firm.
Petitions challenging deal dismissed
A two-member bench also dismissed the two petitions filed against the NCLT approval by Western Coalfields and Pradeep Sot, an employee of debt-ridden Vidarbha Industries Power.
The appellate tribunal said objections raised by the petitioners lacked merit and did not disclose any violation of the provisions of the Insolvency & Bankruptcy Code.
IBC compliance and timeline issues addressed
The resolution plan by Adani Power was compliant with applicable statutory requirements, and the CoC had exercised commercial discretion in a fair and lawful manner, it added.
“…we are of the view that no grounds have been made out to interfere with the order impugned approving the resolution plan submitted by respondent No 2 (Adani Power),” the NCLAT said in its 18-page judgement passed on January 16.
Counsel appearing for Western Coalfields alleged that approval of Adani Power’s resolution plan is not in accordance with the provisions of IBC. It is submitted that the CoC has approved the resolution plan after expiry of 180 days without seeking any extension from the NCLT.
It further alleged that the original resolution plan was modified by the SRA (Adani Power) after expiry of 180 days on April 1, 2025, and the modified plan was approved by the CoC on the same day.
The Committee of Creditor (CoC) never passed a resolution for seeking extension of the period of CIRP beyond 180 days, and RP, by way of an affidavit dated April 2, 2025, after expiry of 185 days, filed the modified resolution plan.
Supreme Court precedent cited
This was refuted by the counsel of S&A Law Offices, which was representing Adani Power, the Successful Resolution Applicant (SRA). They submitted that the resolution plan was approved by the CoC and the NCLT in compliance with Section 30 (2) of the IBC.
While counsel for the RP supported the NCLT order and submitted that the resolution plan was approved in the 10th CoC Meeting of Vidarbha Industries held on February 19, 2025, and February 21, 2025, which was well within the 180-day period.
The CIRP (corporate insolvency resolution process) of Vidarbha Industries Power was commenced on September 30, 2024. A 180-day period was to continue till March 28, 2025, and well within the said period.
The NCLAT said, “Approved resolution plan having already been submitted before the NCLT on March 11, 2025, by the application of RP, no violation of timelines can be contended”.
Moreover, the modification in the acquisition structure undertaken on April 1, 2025, and approved by the CoC on April 1, 2025, and placed before the NCLT on April 2, 2025, cannot be said to be violating any timeline as prescribed under Section 12(1) of the IBC.
The “resolution plan stood approved in the 10th CoC Meeting on February 19, 2025, and February 21, 2025, well within the 180-day period of commencement of CIRP,” it said.
The NCLAT further said that, as per the procedures laid by the Supreme Court in the Essar Steel case, financial and operational creditors are not mandated to pay the same amount in any resolution plan. The apex court has held that “the equality principle cannot be stretched to treating unequals equally”.
The difference in payment of the debts of the financial creditor and operational creditor is clearly contemplated, it said.
Published on January 19, 2026
