NCLAT gives Jet consortium more time to clear SBI dues

The NCLAT also pulled up SBI for threatening to invoke bank guarantees instead of cooperating with JKC in implementing the resolution plan.

By: ENS Economic Bureau
New Delhi | May 27, 2023 05:06 AM IST

1 min read

jet airways SBI dues, NCLAT, JET airways, National Company Law Appellate Tribunal, Business news, Indian express, Current Affairs

It noted that performance bank guarantee can be invoked by lenders, but only when when successful resolution applicant has failed to implement the plan.

In relief for Jalan Kalrock Consortium (JKC), which has emerged as a successful bidder to take over Jet Airways, the National Company Law Appellate Tribunal (NCLAT), on Friday granted it more time to make payments to the State Bank of India.

The appellate tribunal said that the National Company Law Tribunal (NCLT) had approved the consortium’s resolution plan in January, but the matter on appeal for stay was heard by it in March, which was turned down. Hence it would be proper that Jalan Kalrock Consortium gets an exclusion from November 16, 2022 till March 3, 2023, from complying with payment obligation towards SBI.

The NCLAT also pulled up SBI for threatening to invoke bank guarantees instead of cooperating with JKC in implementing the resolution plan. It noted that performance bank guarantee can be invoked by lenders, but only when when successful resolution applicant has failed to implement the plan. FE

From the homepage