The Committee of Creditors (CoC) of grounded airline Jet Airways told the Supreme Court on July 5 that it has spent Rs 470 crores since the implementation of the Corporate Insolvency Resolution Process (CIRP), without getting any return on investment.
Represented by Additional Solicitor General Venkatraman, the CoC further told the court that they are incurring expenses to the tune of Rs 23 crore per month. Jet Airways workmen association agreed with the CoC and informed the court that they have not been paid their dues as well.
The apex court was hearing a case by the Jet aircraft engineers maintenance welfare association against the company seeking recovery of their dues. The case was adjourned after the bench led by Chief Justice of India DY Chandrachud was informed that other cases pertaining to recovery of dues from Jet Airways are pending before other benches of the apex court.
The CJI directed that all the cases pertaining to Jet Airways be grouped together and listed before his bench for hearing soon.
In May 2023, the National Company Law Appellate Tribunal (NCLAT) granted Jalan Kalrock Consortium, which emerged as a successful bidder to take over Jet Airways, more time to make payments to the State Bank of India (SBI).
The appellate tribunal has noted that despite National Company Law Tribunal (NCLT) having approved the resolution plan in January, the case came to be heard by the NCLAT in March and order of refusal of stay was passed on March 3, hence the tribunal held that Jalan Kalrock is entitled to an exclusion from November 16, 2022, to March 3, 2023, for complying with payment obligation towards SBI.
On January 13, the National Company Law Tribunal (NCLT) allowed the transfer of the beleaguered airline to the consortium led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.
It also asked the consortium to make payments by May 15, 150 days from the initiation of the ownership proceedings, but the NCLAT exemption gives it more time.
The consortium was to make the first tranche of the payment to Jet's lenders before May 15 but it didn't and feared that the SBI would invoke the performance bank guarantee of Rs 150 crore in lieu of Rs 175 crore worth of dues.
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.
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.
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!
