3 min readNew DelhiMar 13, 2024 01:29 AM IST
First published on: Mar 12, 2024 at 05:42 PM IST
In what could pave the way for Jet Airways to fly again, the National Company Law Appellate Tribunal (NCLAT) on Tuesday directed the monitoring committee of the grounded airline to transfer its ownership to the Jalan Kalrock Consortium (JKC) within 90 days.
The National Company Law Tribunal (NCLT) had permitted the transfer of ownership to JKC, the successful resolution applicant, in January last year. The appellate tribunal on Tuesday also directed the consortium to obtain an air operator’s certificate within the 90-day window.
Legal observers said the lenders to the carrier may approach the Supreme Court seeking a stay on the NCLAT’s order.
The tribunal also allowed JKC to adjust `150 crore from its bank guarantee towards the first tranche of payment of `350 crore to the lenders. “The performance bank guarantee of `150 crore which is lying with the monitoring committee shall be adjusted towards the first tranche payment of `350 crore as `200 crore has already been paid by the successful resolution applicant,” NCLAT said.
Jet Airways in a statement said: “NCLAT has approved the implementation of the resolution plan as originally approved without any deviations and has given directions to lenders for specific and immediate implementation. Jet Airways can start business and operations, subject to regulatory approvals, after handover to successful resolution applicant.”
JKC had deposited `200 crore in two tranches by September last year. The lenders had argued that JKC hadn’t complied with the conditions of the resolution plan, ranging from payment of airport dues to payment of the first tranche.
JKC and the lenders of Jet Airways have been engaged in a legal tussle over the transfer of ownership of the airline to the successful bidder for over a year. In January, the Supreme Court, while refusing to interfere in other issues, had set aside the order of the NCLAT permitting JKC to adjust `150 crore from its bank guarantee.
Jet Airways was grounded in 2019 amid mounting financial vows. State Bank of India, its largest lender, had initiated insolvency proceedings against the company before NCLT Mumbai, and the company was subsequently admitted to the resolution process. In 2021, JKC emerged as the successful resolution applicant to re-commence the operations of the airline. —FE
NCLAT upholds Jet Airways transfer of ownership (File Image) 
Share
