The National Company Law Appellate Tribunal (NCLAT) has directed Jet Airways’ monitoring committee to complete the transfer of the airline’s ownership to Jalan Kalrock Consortium (JKC) within the next 90 days. JKC is also required to obtain an air operator’s certificate within the same period, according to the tribunal’s decision.
The tribunal has authorised the adjustment of the Performance Bank Guarantee, amounting to ₹150 crore, toward the initial tranche payment of ₹350 crore. Despite JKC depositing ₹200 crore in two instalments by September of the previous year, lenders argued that the consortium had not met various conditions outlined in the resolution plan, including settling airport dues and making the first tranche payment.
Long legal dispute
This ruling follows a long legal dispute between the lenders of Jet Airways and Jalan Kalrock Consortium. The Supreme Court had previously deferred the matter to the NCLAT for resolution.
In response to the NCLAT decision, a spokesperson for JKC stated, “NCLAT has approved the implementation of the resolution plan as originally approved without any deviations and has given directions to lenders for specific and immediate implementation. No relief granted to lenders. Lenders to create security on immovable properties as offered by SRA within 30 days from today, upon creation of such security lenders to adjust the performance bank guarantee of ₹150 crore towards the ₹150-crore payment from SRA. Within 30 days of creation of security, lenders to issue shares of Jet Airways to SRA and handover the company. Within 30 days from the date of such handover, SRA and lenders to complete all payments to creditors as per the approved resolution plan. Jet Airways can start business and operations, subject to regulatory approvals, after handover to SRA.”