In a step that could pave way for an early resumption of flight operations at Jet Airways, the National Company Law Appellate Tribunal (NCLAT) on March 12 upheld the transfer of ownership of the grounded airline to Jalan Kalrock Consortium (JKC). The National Company Law Tribunal (NCLT) had already permitted the transfer of ownership to JKC back in January last year.
The appellate tribunal further directed the lenders to effect the transfer in 90 days, while asking JKC to obtain an air operator's certificate with in this window.
The NCLAT has further permitted JKC to adjust the Rs. 150 crore from its bank guarantee towards the first tranche of payment of Rs. 350 crore to the lenders.
Also read: MC Explainer: One year on, Jet Airways ownership dispute still rages
Troubled Flight
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 Rs 150 crore from its bank guarantee.
A Brief Timeline
Jet Airways, was grounded in 2019 amid mounting financial vows. State Bank of India (SBI), its largest lender, 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.
While JKC had claimed that the lenders have not begun the process of transferring ownership of the airline, the lenders argued that JKC had not infused any funds into Jet Airways. In February 2023, the lenders approached the NCLAT against the NCLT’s order on the transfer of ownership. The NCLAT, however, refused to issue any injunction in favour of the lenders on the issue.
While the lenders and JKC kept warring, in September 2023, the NCLAT permitted JKC to adjust its Rs 150 crore performance bank guarantee to infuse Rs 350 crore into Jet Airways.
(This is a developing story, please come back for more details)
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