Jalan Kalrock Consortium (JKC) told the National Company Law Appellate Tribunal (NCLAT) on July 28 that the Committee of Creditors (CoC) is not permitting them to commence operations even though they had obtained all the requisite permissions from the government.
JKC argued that it had obtained the Air Operator's Certificate (AoC) for one year from 2022-23, however, since the CoC objected to the transfer of ownership at every stage, they could not commence operations.
Senior Advocate Krishnendu Dutta, who appeared for the consortium, told the appellate tribunal that the slots it had obtained will be given to others if the airline does not commence operations at the earliest.
JKC told the court that it had been "left in a zone of uncertainty now" since DGCA is pursuing litigation against them at various forums. The CoC is taking contrary stands in every forum and the NCLAT should conclusively decide on their ownership, the consortium said.
Appearing for the CoC, ASG Venkatraman argued that the National Company Law Tribunal (NCLT) had permitted JKC to assume ownership of Jet Airways based on various condition precedents. However, the consortium has failed to fulfil any of them.
The ASG told the court that the consortium is neither pumping the requisite cash nor commencing the operations. The AoC's validity has been extended only for a limited time and it is uncertain if DGCA will renew it after September, the ASG added. He argued that liquidation of Jet Airways was sought at the Supreme Court as JKC was not fulfilling any of its obligations and with the permits and certificates expiring, it may not be possible for the operations to recommence.
The tribunal on hearing both the parties, agreed to commence hearing the case on August 7.
On July 10, the CoC told the Supreme Court the airline be wound up as the resolution plan approved by the NCLT was not workable.
A CoC is formed once a company is admitted to insolvency. It is a body of financial creditors that represents the interest of stakeholders. The voting percentage in the committee is proportional to the amount a financial institution has lent to the company in insolvency.
On July 5, the CoC told the court it had spent Rs 470 crore since the implementation of the Corporate Insolvency Resolution Process (CIRP), without getting any return on investment. The creditors said they were incurring Rs 23 crore in expenses every month.
The Jet Airways Workmen Association agreed with the CoC and told the court they had not been paid their dues.
In May 2023, the National Company Law Appellate Tribunal (NCLAT) granted Jalan Kalrock Consortium, which emerged as a successful bidder to take over Jet Airways, more time to make payments to the State Bank of India (SBI).
While the National Company Law Tribunal (NCLT) approved the transfer to Jalan Kalrock in January, the decision was challenged in NCLAT, which ruled in favour of the consortium on March 3, 2023.
Hence, Jalan Kalrock was entitled to exclude November 16, 2022, to March 3, 2023 period, during which the ownership hearing was on, to comply with the payment deadline.
On January 13, NCLT allowed the transfer of the beleaguered airline to the consortium led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.
The lenders approached the NCLAT, opposing the ownership transfer, saying the consortium had not fulfilled its obligations.
Jet Airways was grounded in April 2019 over growing losses and a debt of about Rs 8,000 crore. In October 2020, the airline's Committee of Creditors (CoC) approved the revival plan submitted by the Jalan-Kalrock consortium.
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