The appellate tribunal directed lenders to effect the transfer in 90 days from today. It asked JKC to obtain an air operator’s certificate by the end of this window.
The National Company Law Appellate Tribunal (NCLAT) on Tuesday upheld the transfer of ownership of Jet Airways to Jalan Kalrock Consortium (JKC), almost a year after it permitted the transfer of ownership to JKC in January 2023.
The appellate tribunal directed lenders to effect the transfer in 90 days from today. It asked JKC to obtain an air operator’s certificate by the end of this window. Before this, it had given it more time to pay Rs 175 crore to SBI as 107 days had passed since NCLAT’s order allowing transfer of ownership.
The decision comes as the legal tussle over the transfer of ownership of the airline continues between JKC and the lenders of Jet Airways.
Jet Airways collapsed in April 2019. The administrators later admitted creditor claims of Rs 78 billion ($941.3 million). The State Bank of India was the Jet Airways’ biggest lender.
NCLAT also allowed the adjustment of the Performance Bank Guarantee of Rs 150 crore towards the first tranche payment of Rs 350 crore.
“The PBG of Rs 150 Crore which is laying with the monitoring committee shall be adjusted towards the first tranche payment of Rs 350 crore as Rs 200 crore has already been paid by the SRA,” NCLAT said in its order today.
In January, the apex court refused to interfere in other issues. It had set aside the order of the NCLAT permitting JKC to adjust Rs 150 crore from its bank guarantee. The court ordered JKC to deposit Rs 150 crore in a designated account.
The current move of NCLAT aims to address the longstanding grievances of Jet Airways employees who have faced financial hardships amidst the airline’s insolvency proceedings.
In September 2023, JKC deposited Rs 200 crore in two tranches. The lenders had said that JKC did not comply with the conditions of the resolution plan ranging from payment of airport dues to payment of the first tranche.
Last week, the Supreme Court turned down Jalan Kalrock Consortium’s (JKC) plea, wherein it challenged the National Company Law Appellate Tribunal (NCLAT) order that allowed the sale of aircraft belonging to Jet Airways.
The NCLAT previously had allowed Malta-based company Ace aviation to buy the aircraft. The company had previously claimed that it had already deposited to Rs 50 crore for the deal.
JKC had filed an appeal before the apex court in February 2024 objecting to the sale. The SC told JKC that the bench did not find anything wrong with the NCLAT order and noted that the sale of aircraft could benefit JKC as the sale would infuse more funds and help in the revival process.
