Jalan Kalrock Consortium (JKC), the successful resolution applicant that is tasked to revive the grounded airline Jet Airways, has challenged the order of National Company Law Appellate Tribunal's (NCLAT) order permitting the sale of aircraft belonging to the airline.
The appeal, which was filed in February 2024, is expected to come up for hearing on March 7. The aircraft are expected to be sold for Rs 400 crore to a Malta-based company called Ace aviation. The company claims to have deposited Rs 50 crore already.
Meanwhile, Ace aviation has moved a plea in NCLAT seeking directions to expediate the sale keeping in mind that the aircraft have been grounded for almost six year now. The plea stated: "The aircraft are grounded since 2018, substantial investment and major restoration efforts will have to be put in to make the Aircraft airworthy. Based on the current information about the condition of the Aircraft, Ace aviation apprehend that at least 8-10 months would be required to restore the aircraft to an airworthy condition."
In December 2023, the NCLAT dismissed an appeal by JKC noting that the sale of aircraft do not affect the rights of any of the stakeholders in the airline as the sale proceeds will be deposited in an escrow account. The proceeds will subsequently be distributed in accordance with the resolution plan.
Case file:
The process of sale of three aircraft for Rs 400 crore was put on hold in November 2022 owing to a deadlock in the monitoring committee comprising representatives of the financial creditors, the successful resolution applicant (JKC) and the resolution professional. It emerged that while the airline's lenders were agreeable for the sale of the aircraft, the consortium and the erstwhile workmen were opposed to it.
According to the workmen, the aircraft could not be sold as they have a lien over the aircraft towards non-payment of their gratuity and provident fund dues.
Ace aviation approached NCLT against this deadlock. In October 2023, NCLT told the committee: "Reinitiate the process and conclude the sale of the aircraft after taking into consideration the applicant as one of the eligible bidders."
In December 2023, NCLAT refused to interfere with order NCLT.
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