Jalan Kalrock Consortium (JKC), the successful resolution applicant of the grounded airline Jet Airways, has filed an appeal against the order of the National Company Law Tribunal (NCLT) asking the airline's monitoring committee to reinitiate and conclude the sale of aircraft.
The case briefly came up for hearing at the National Company Law Appellate Tribunal (NCLAT) on December 7, it was however adjourned to December 12 owing to paucity of time.
The sale process 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 (Jalan Kalrock Consortium) and the resolution professional.
The NCLT directed the committee to "Reinitiate the process and
conclude the sale of the aircraft after taking into consideration
the applicant as one of the eligible bidders." In 2022, Malta-based Ace Aviation's letter of intent to buy four Boeing 777 aircraft has already been accepted by the monitoring committee.
Ace Aviation had earlier told Moneycontrol that the delays in the sale of the aircraft may force it to look at other options. Ace had already invested Rs 50 crore towards buying the aircraft and was ready to invest another Rs 350 crore.
Court litigation
Ace Aviation had approached the NCLT in late 2022 to enforce the sale. In July 2023, the NCLT in an order noted that an "order either allowing the sale of the aircraft or restraining the sale would lead to the reopening of the duly approved Resolution Plan. Since the sale process was kept in abeyance by the lenders and monitoring committee, it is their responsibility to clear the deadlock as it has arisen post-approval of the resolution plan."
It emerged that while the airline's lenders were aggregable for the sale of the aircraft, the consortium and the erstwhile workmen were opposed to it.
According to the consortium, the effective date of implementation of the resolution plan would start from August 2023, and they are ready to implement the plan. As per the terms of the plan, the sale proceeds should come to Jet and not the lenders.
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 approached the National Company Law Appellate Tribunal (NCLAT) against this observation by NCLT. The NCLAT, however, refused to pass any order stating that the case has not attained finality in NCLT. Subsequently, the NCLT has now passed a final order in the case.
However, the company eventually withdrew its plea.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
