Jalan Kalrock Consortium, the winning bidder for the revival of the grounded Jet Airways, has urged the Supreme Court to give it a hearing first before deciding a likely appeal by the Committee of Creditors (CoC) against the National Company Law Appellate Tribunal (NCLAT) order that gave it more time to pay Rs 350 crore to the lenders.
The caveat was filed after NCLAT on August 28 allowed the consortium time till September 30 to pay Rs 350 crore. Jalan Kalrock Consortium agreed to to pay Rs 100 crore by August 31, another Rs 100 crore by September 30 and the remaining Rs 150 crore will be adjusted from an already existing performance bank guarantee.
While the lenders did not object to the extension of time till September 30, they objected to the adjustment of the performance bank guarantee.
On August 31, the consortium deposited the first tranche of Rs 100 crore.
A caveat is a filed by a litigant informing the court that the opposing party, which has not succeeded in the lower court, may file a case against them. The court has to hear both sides before passing any order if a caveat is filed.
A committee of creditors is formed once a company is admitted to insolvency. It is a body of financial creditors that represents the interest of stakeholders.
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. However, the CoC took it to NCLAT opposing the transfer.
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 CoC approved the revival plan submitted by the Jalan-Kalrock consortium.
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