NCLAT Upholds Adani Power’s INR 4,000 Cr Resolution Plan for Vidarbha Industries Power

Adani Power Ltd. has secured a major legal win after the National Company Law Appellate Tribunal (NCLAT), Delhi, dismissed appeals challenging its INR 4,000-crore resolution plan for Vidarbha Industries Power Ltd.(VIPL).

The appeals were filed by Western Coalfields Ltd.and employees of VIPL against the earlier approval granted by the National Company Law Tribunal (NCLT), Mumbai Bench. After detailed hearings, the appellate tribunal upheld the resolution plan in full, ruling that the objections raised were without merit and did not violate provisions of the Insolvency and Bankruptcy Code (IBC).

In its judgment, the NCLAT observed that the resolution plan complied with all statutory requirements and reaffirmed that the Committee of Creditors (CoC) had exercised its commercial wisdom in a lawful and fair manner. The tribunal found no grounds to interfere with the approval process.

Adani Power was represented by S&A Law Offices, which successfully defended the resolution plan valued at INR 4,000 crore. The verdict ensures continuity of operations for the 600 MW thermal power plant located at Butibori, Nagpur, Maharashtra, and provides stability to the stressed power asset.

The ruling is expected to have significant implications for future insolvency resolutions in the power sector, reinforcing the IBC’s emphasis on resolution over liquidation and strengthening investor confidence in India’s insolvency framework.

The S&A Law Offices team was led by Senior Partner  Daizy Chawla, along with Partner Himanshu Dubey, Partner Designate Jatin Kapoor, and Senior Principal Associate Kumar Shashwat Singh Sawno.