NCLAT’s Verdict on Jet Airways’ Resolution

On Tuesday, March 12, 2024, Jet Airways received a ray of hope for its revival. The National Company Law Appellate Tribunal (NCLAT) directed the lenders of Jet Airways to complete the transfer of the ownership of the airlines to the successful bidder, Jalan Kalrock Consortium (JKC), within 90 days.

Directives to Complete Ownership Transfer and Obtain Air Operator’s Certificate

On Match 12, 2024, the National Company Law Appellate Tribunal upheld the resolution plan for Jet Airways, which has been grounded since 2019. The appellate tribunal directed the lenders to complete the ownership. Additionally, the NCLAT also directed the JKC to get an air operator’s certificate within the same period. Also, the airlines’ lenders have to create security on three immovable properties situated in Dubai, which are offered by Jalan Kalrock Consortium, within 30 days.

The appellate tribunal also allowed the adjustment of the Performance Bank Guarantee (PBG) of ₹150 crore towards the first tranche payment of ₹350 crore as ₹200 crore was already raised by the consortium in two tranches by September 2023.

Further, the appellate tribunal has also directed Jalan Kalrock Consortium to pay dues towards the Jet Airways employees, workmen, creditors, and other expenses of the resolution process from the first tranche of ₹350 crore.

While providing the order, the chairperson of the National Company Law Appellate Tribunal said, “We hope and trust that all parties will take steps to implement the resolution plan to make the first Corporate Insolvency Resolution Process (CIRP) of the aviation company in the country successful.”

The lenders of Jet Airways and Jalan Kalrock Consortium, the successful bidder, have been in a legal tussle for over a year about the transfer of the ownership of the grounded airlines.

Earlier, the lenders, led by SBI, approached the Supreme Court for a resolution. However, the Supreme Court declined to interfere in the matter and directed the National Company Law Appellate Tribunal to take a decision on the issue.

About Jet Airways

Incorporated in 1993, Jet Airways Ltd offers scheduled air transportation services such as passenger carriage, cargo, and related services. On March 13, 2024, Wednesday, the share price of Jet Airways opened at ₹45.20 on the NSE.

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