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Jet Airways case: NCLAT to pronounce orders in consortium’s plea against SBI on May 30

Jet Airways was grounded in April 2019 over piling losses and 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.

May 22, 2023 / 15:24 IST
In January, NCLT allowed the transfer of Jet’s ownership to JKC saying conditions were met.

The National Company Law Appellate Tribunal (NCLAT) on May 22 reserved orders in a plea by Jalan Kalrock Consortium (JKC), the successor to Jet Airways management, seeking directions to stop the State Bank of India (SBI) to invoke its bank guarantee of Rs 150 crore.

The appellate tribunal is likely to pronounce orders in the case on May 30.

As per the order of the National Company Law Tribunal (NCLT) from January 13, the Consortium was supposed to make the first tranche of the payment to Jet's lenders before May 15. However, the consortium is yet to make the payments owing to which they apprehended that SBI will invoke the bank guarantee of Rs 150 crore in lieu of their Rs 175 crore dues.

The airline's ownership would not be given to the consortium if the outstanding payments are not cleared. The air operator's certificate of Jet Airways is also scheduled to expire on May 19.

In January, NCLT allowed the transfer of Jet’s ownership to JKC saying conditions were met. The tribunal had allowed JKC's plea and had set November 16, 2022, as the effective date for the resolution plan.

Lenders of the airline had approached the NCLAT as they opposed the ownership transfer to the consortium. They alleged that the consortium had not fulfilled its obligations and hence contended that the ownership should not be transferred.

Jet Airways was grounded in April 2019 over piling losses and 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.

S.N.Thyagarajan
first published: May 22, 2023 03:24 pm

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