Jet Airways-JKC case: NCLAT defers hearing to November 1

Jet Airways-JKC case: Additional Solicitor General Venkatraman, who appeared for the lenders, told the NCLAT that they have apprehensions about the source of the funds.

The National Company Law Appellate Tribunal (NCLAT) on October 12 deferred the hearing of the Jet Airways case to November 1. The appellate tribunal further instructed the lawyers to complete the pleadings by then. On October 4, the lenders of the grounded airline Jet Airways told NCLAT that the compliance by Jalan Kalrock Consortium (JKC) in depositing Rs 200 crore did not align with the resolution plan.

According to the lenders, JKC was supposed to make the entire payment through the consortium. However, the money was deposited from other sources as well. Additional Solicitor General Venkatraman, who appeared for the lenders, told the NCLAT that they have apprehensions about the source of the funds.

JKC fulfilled its total financial commitment of Rs 350 crore ($42.1 million) equity as per the court-approved resolution plan, and all commitments by JKC now stand fulfilled to take control of the iconic airline, the press statement issued by the airlines said.

Background

On August 28, NCLAT permitted the consortium to pay Rs 200 crore by September 30 and permitted the adjustment of an existing bank guarantee towards Rs 150 crore.

Earlier in August, the lenders told NCLAT that they may choose to not pursue the appeal against the transfer of the airline's ownership to Jalan Kalrock Consortium if it pays Rs 350 crore towards fulfilling condition precedents. In May 2023,  NCLAT granted the 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 the November 16, 2022-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.