NCLAT asks Adani Infra to pay interest on balance amount for land purchase
This story was originally published at 19:39 IST on 8 December 2025
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NEW DELHI – The National Company Law Appellate Tribunal Monday asked Adani Infrastructure & Developers Pvt. Ltd. to pay 12% interest on balance sale consideration of Anil Ltd.'s land after a 30 days period from Dec. 29, 2022 till Jun. 15, 2023, on which date the the Ahmedabad bench of the National Company Law Tribunal granted it extension for payment of sale consideration. The appellate tribunal directed Adani Infrastructure, which purchased land at an auction, to pay the interest amount within two weeks.
The appellate tribunal set aside the Ahmebadad tribunal order to the extent that it granted a waiver of interest to Adani Infrastructure for the delayed payment of the balance of the sale consideration. "We, thus, are of the view that submission of respondent (Adani Infrastructure) that the assets (of Anil) being attached with the state tax department, there was no obligation to pay sale consideration, cannot be accepted," said the appellate tribunal.
The clauses of the tender document for Anil's property sale clearly stated that the sale was 'as is where is basis', 'as is what is basis', and 'whatever there is basis', and that the prospective bidders were required to conduct their own due diligence. Thus, the tender document made it clear that payment timelines are not contingent on the completion of the transfer-of-title process, the appellate tribunal noted.
The Ahmedabad tribunal had admitted Anil to insolvency in 2017 and ordered its liquidation in 2018. Thereafter, the liquidator filed an application before the Ahmedabad Tribunal challenging the alleged attachment of Anil's property by the state tax department.
In 2022, the liquidator issued a notice of e-auction sale and a tender document for Anil's property. Adani Infrastructure gave an offer with a bid amount of INR 3.50 billion and a demand draft of INR 200 million for the property. Thereafter, Adani Infrastructure was declared a successful auction purchaser of Anil's property on Dec. 29, 2022.
In 2023, Adani Infrastructure made a partial payment for Anil's land. It raised issues regarding encroachment on the land, the state tax department's charge over the land, and the entry of the name 'Anil Products Ltd.' instead of 'Anil Ltd.' in the revenue records. Thereafter, Adani Infrastructure wrote to the liquidator to inquire whether it could convey the property to the company upon receipt of payment of the remaining amount on or before Mar. 29, 2023. In its reply, the liquidator stated that the transfer process shall be treated as an independent process and shall not affect the payment schedule.
On Jun. 15, 2023, the Ahmedabad tribunal granted Adani Infrastructure an extension to pay the remaining amount. On Jun. 21, 2024, the Ahmedabad tribunal passed an order removing the attachment on Anil's property and exonerating Adani Infrastructure from paying interest on the balance of the sale consideration for Anil's land.
The liquidator argued that after order passed by Ahmedabad tribunal on Jun. 15, 2023, the entire payment of balance amount was made by Adani Infrastructure within the time allowed, however, the payment made by it was not with 12% interest, which was liable to be paid after 30 days, as provided under Schedule-I of IBBI (Liquidation Process) Regulations, 2016.
Adani Infrastructure stated that the sale certificate was required to be issued within 30 days of the last payment of the full bid amount, and that, since the liquidator was unable to execute the sale deed due to the attachment of the asset, there was no obligation on its part to make payment. The company, having paid the balance consideration within the time allowed by the Ahmedabad tribunal, had no liability to pay interest, said Adani Infrastructure. End
Reported by Surya Tripathi
Edited by Saji George Titus
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