May withdraw NCLAT appeal if Jalan-Kalrock deposits Rs 350 cr: Jet lenders

The appeal filed by the State Bank of India, the chief creditor to Jet Airways, is related to the transfer of the ownership of Jet Airways to the Jalan-Kalrock consortium

Jet Airways

The Jalan-Kalrock consortium (JKC) had won the bid for Jet Airways (File)

BS Web Team New Delhi

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The committee of creditors (CoC) of Jet Airways stated it might not pursue its appeal filed before the National Company Law Appellate Tribunal (NCLAT) if the Jalan-Kalrock consortium (JKC) deposits Rs 350 crore, The Economic Times (ET) reported on Tuesday. The Jalan-Kalrock consortium (JKC) had won the bid for the grounded airline.

The CoC's counsel told the appellate tribunal that the consortium had repeatedly failed to deposit the funds. The JKC had promised to pay Rs 350 crore before August 31. The National Company Law Tribunal (NCLT) had extended the deadline to pay Rs 350 crore in May. The NCLAT ordered the CoC to file an affidavit listing its contentions within a week and listed the matter for August 18.

The workmen association of Jet Airways told the appellate tribunal that the workmen's dues were also pending.

The appeal filed by the State Bank of India (SB), the chief lender to Jet Airways, is related to transferring the airline's ownership to the Jalan-Kalrock consortium. According to the creditors, the JKC had failed to fulfil any of the conditions set by the NCLT order to claim ownership of the airline. In the last hearing, the counsel for the JKC said the creditors were creating obstacles to restart operations.

Earlier, the creditors challenged the NCLAT's order of May 26 which granted the Jalan-Kalrock consortium three-and-a-half months more to make payments. The NCLAT had also asked the lenders not to invoke the consortium's Rs 150 crore bank guarantee (BG) that was submitted at the time of bidding, stating that banks should focus on reviving a company undergoing insolvency proceedings rather than penalising the successful bidder for lapses.

Last week, Jet Airways successfully renewed its air operator's certificate from the Director General of Civil Aviation (DGCA). The earlier certificate had expired in May.

On July 10, the creditors requested the Supreme Court (SC) to wind up the airline, saying that the plan approved by the NCLT was not viable. After getting admitted for insolvency in 2019, Jet Airways has been grounded for over four years.

First Published: Aug 08 2023 | 12:47 PM IST

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