NCLAT reserves order in Jet Airways ownership transfer case

NEW DELHI: National Company Law Appellate Tribunal (NCLAT), Thursday, reserved its order in the plea filed by State Bank of India-led consortium of lender's against Jalan-Kalrock consortium (JKC), the successful bidder for the grounded Jet Airways. JKC and SBI-led Consortium have blamed each other for not letting the airline take off. The senior counsel for JKC claimed that they have met all the pre-conditions stated in the resolution plan (RP) for the monitoring committee of Airways to transfer the ownership. The lenders argued that JKC has fallen short of even fulfilling its basic obligation under the resolution plan of infusing Rs 350 crore as first tranche of payment.

While JKC had transferred Rs 200 crore to the lenders account by September 30, 2023, it had won a favourable order from NCLAT for adjustment of the performance bank guarantee of Rs 150 crore. The order was later overturned by SC, which asked JKC to deposit Rs 150 crore by January 31.

The lenders claimed that even the second tranche of Rs 100 crore that was invested by JKC did not come out of a specific account, in violation of the terms of the agreement.