NEW DELHI, Jan 21, 2026, 11:25 IST
- India’s insolvency appellate tribunal has confirmed Adani Power’s Rs 4,000 crore resolution plan for Vidarbha Industries Power
- Western Coalfields and an employee representative had their appeals dismissed
- The ruling supports the payout framework but emphasizes that provident fund and gratuity payments must be settled in full
India’s insolvency appellate tribunal has given the green light to Adani Power’s 4,000-crore rupee resolution plan for Vidarbha Industries Power, removing a major legal obstacle for the acquisition of the 600-megawatt thermal plant in Maharashtra.
This decision cuts down the scope for last-minute hurdles that frequently bog down India’s bankruptcy cases, particularly in the power sector where recoveries for lenders, suppliers, and workers often clash.
For Adani Power, it clears up a significant bit of uncertainty tied to a stressed asset the company has chased under the Insolvency and Bankruptcy Code (IBC), India’s primary tool for tackling corporate insolvencies.
The National Company Law Appellate Tribunal (NCLAT) rejected appeals from Western Coalfields and employee representative Pradeep Sot, maintaining the Mumbai bench of the National Company Law Tribunal’s June 18, 2025 order that approved the plan.
Western Coalfields, an operational creditor, contended the plan was essentially altered and greenlit past the 180-day deadline for the corporate insolvency resolution process, or CIRP — the legal timeframe set for bankruptcy resolutions.
NCLAT dismissed that argument, stating the plan was approved on schedule and subsequent modifications were minor adjustments that didn’t restart the timeline.
The employee representative pushed back on the payout for operational creditors — suppliers and workers — pointing out they were offered just 1 crore rupees against claims totaling roughly 554 crore rupees. Financial creditors, by comparison, stood to recover much more. The tribunal upheld the plan, emphasizing that operational creditors would have received nothing in liquidation given the shortfall even for secured lenders. It also insisted that provident fund and gratuity dues must be fully paid.
The appellate bench ruled there were no reasons to overturn the approval of Adani Power’s plan, having found no violation of the IBC.
Court documents reported by local media revealed the committee of creditors — the lenders who vote on the plan — gave their nod in February 2025. Adani Power then posted a 100-crore rupee performance guarantee later that same month, ahead of the resolution professional submitting the plan to NCLT in March.
Reports indicate that S&A Law Offices handled the representation of Adani Power in the case.
The legal route might not be entirely shut. Additional appeals could come, and any hold-up in rolling out the plan might drag the plant back into court, slowing final payments to creditors and employees.
Adani Power shares slipped 1.46% to close at 140.56 rupees on the National Stock Exchange in the previous session. The stock drew trader attention this week following a tribunal ruling.
