In a set back for Jalan Kalrock Consortium (JKC), the successful resolution applicant for the grounded airline Jet Airways, National Company Law Appellate Tribunal (NCLAT) on December 22 dismissed its plea challenging the sale of aircraft belonging to the airline.
The aircraft are expected to be sold for Rs. 400 crore to a Malta-based company called Ace aviation. The company claims to have deposited Rs 50 crore already.
NCLAT has also dismissed an appeal by all-India Jet Airways Officers and Staff Association have also filed against the National Company Law Tribunal's (NCLT) judgment.
According to the NCLAT, the sale of aircrafts do not affect the rights of any of the stakeholders in the airline as the sale proceeds will be deposited in an escrow account. The proceeds will subsequently be distributed in accordance with the resolution plan.
Case file:
The aircraft 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. It emerged that while the airline's lenders were agreeable for the sale of the aircraft, the consortium and the erstwhile workmen were opposed to it.
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 aviation approached NCLT against this deadlock. In October 2023, 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.
In September 2023, 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.
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!
