Velocity Enterprises, a Bhopal, Madhya Pradesh-based contractor, has filed the first challenge to the Gautam Adani-led Adani Enterprises’ ₹14,543-crore resolution plan for the diversified infrastructure conglomerate Jaiprakash Associates Ltd (JAL) in the National Company Law Appellate Tribunal (NCLAT).
Velocity moved the appellate tribunal after the National Company Law Tribunal (NCLT), Allahabad, rejected its claim of over ₹1 crore arising from contractual work on 17 March.
The NCLAT will hear the challenge on 20 March.
Confirming the development, Aadarsh Kothari, counsel for Velocity Enterprises, told Mint that several creditors, such as his client, were not given a fair opportunity to present their claims.
“The entire process in which the NCLT has acted reflects a gross haste in proceeding with the process, without affording the appellant a fair and meaningful opportunity to present its claim,” he said.
Mint has learnt that more creditors, whose claims were rejected by the NCLT in its 17 March order while approving the plan, are likely to join the challenge before the NCLAT in the coming days.
Mint‘s emailed queries to the Adani Group and Bhuvan Madan, the resolution professional for JAL, remained unanswered.
The resolution plan
The NCLT on 17 March had , rejecting objections, including those from rival bidder Vedanta Ltd.
The plan had secured about 93% votes from financial creditors, well above the 66% threshold under the Insolvency and Bankruptcy Code (IBC). National Asset Reconstruction Co. Ltd (NARCL), which holds over 85% voting share, led the support.
Adani’s bid was preferred for its payment structure, offering around ₹6,000 crore upfront and the remaining within two years. In comparison, Vedanta’s ₹12,505-crore offer proposed payments over five years.
Against total admitted claims of ₹5.44 trillion, the plan offers a realizable value of about ₹15,343 crore, implying a recovery of roughly 2.8% for creditors.
Under the plan, Adani will gain access to key JAL assets, including nearly 3,985 acres of land in Noida and Greater Noida, cement capacity of 6.5 million tonnes in Uttar Pradesh and Madhya Pradesh, and a 24% stake in Jaiprakash Power Ventures Ltd. The acquisition is expected to support the group’s cement expansion strategy.
Velocity’s dispute stems from a 2022 work order for electrical and mechanical works in a Madhya Pradesh irrigation project. The contractor claimed it had completed substantial work and was denied dues, while also challenging the termination of its contract in December 2024.
The resolution professional rejected its claim, citing delays and alleged overpayments, and the NCLT upheld this view, terming it a contractual dispute outside the IBC’s scope.