Adani Power's ₹4,000-crore resolution plan for Vidarbha Industries upheld by NCLAT

The National Company Law Appellate Tribunal (NCLAT), Delhi, has upheld Adani Power Limited’s ₹4,000-crore resolution plan for Vidarbha Industries Power Limited (VIPL), dismissing appeals filed by Western

Coalfields Limited and employees of VIPL.

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The appeals challenged an earlier order of the National Company Law Tribunal (NCLT), Mumbai bench, which had approved the resolution plan submitted by Adani Power. After hearing the matter, the NCLAT rejected the objections raised by the appellants and upheld the approval of the resolution plan in full.

In its order, the appellate tribunal held that the objections lacked merit and did not disclose any violation of the Insolvency and Bankruptcy Code (IBC).

The ruling said, "In view of the foregoing discussions, we are of the view that the pay outs to the operational creditor including the employees cannot be said to be violating the provisions of Section 30(2)(b) of the IBC. Appellants have not been able to prove any other violation in the approval of the resolution plan. "

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It observed that the resolution plan complied with statutory requirements and that the Committee of Creditors had exercised its commercial discretion in accordance with the law.

The verdict confirms the resolution of the 600 MW power asset located at Butibori in Nagpur district of Maharashtra.

Shares of Adani Power closed at ₹140.30, down ₹2.33 or 1.63% today, January 19.