The National Company Law Appellate Tribunal (NCLAT) in Delhi has dismissed appeals filed by Western Coalfields Limited and a group of employees, marking a definitive victory for Adani Power Limited (APL).
The tribunal’s judgment upheld the ₹4,000 crore resolution plan for Vidarbha Industries Power Limited (VIPL). The two-member bench ruled that the plan—originally approved by the NCLT Mumbai in June 2025—fully complies with the Insolvency and Bankruptcy Code (IBC) and that the Committee of Creditors (CoC) acted within its commercial wisdom.
A key part of the legal challenge involved allegations that the resolution process exceeded the statutory 180-day window. However, the NCLAT noted that the CIRP officially commenced on September 30, 2024, and the CoC approved the plan in February 2025, well within the deadline ending March 28, 2025.
Furthermore, the tribunal addressed concerns regarding payouts to operational creditors and employees, stating that the allocations did not violate Section 30(2)(b) of the IBC. The ruling reaffirmed that financial and operational creditors do not require identical treatment, citing the Supreme Court’s precedent in the Essar Steel case.
Capacity boost and financial recovery:
The ₹4,000 crore deal provides a structured recovery for stakeholders, with secured financial creditors set to receive approximately ₹3,706 crore, representing nearly 60% of their admitted claims, along with a 26% equity stake in the revived entity.
For Adani Power, this acquisition is a significant milestone in its aggressive expansion strategy. The integration of the 600 MW (2×300 MW) coal-fired plant in Butibori, Nagpur, brings Adani Power’s total operational capacity to 18,150 MW, moving it closer to its 2030 goal of 30,670 MW.
“The acquisition of VIPL is a key milestone in Adani Power’s strategy to unlock value through the turnaround of stressed assets. As we continue expanding our portfolio, we remain committed to supporting India’s vision of ‘Electricity for All’ by delivering reliable, affordable base-load power that fuels the country’s sustainable growth,” said SB Khyalia, CEO, Adani Power Limited.
