Jet Airways insolvency case: NCLAT reserves order on Jalan-Kalrock Consortium's plea
Agencies
Synopsis
The consortium had emerged as the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process. The consortium is to pay Rs 350 crore to the lenders by August 31 but has sought an extension for making the payment. A three-member NCLAT bench said it will pass the order on next Monday and has granted three days' time to the parties to file their written submissions.
By PTI
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The National Company Law Appellate Tribunal (NCLAT) on Monday reserved its order on Jalan-Kalrock Consortium's plea seeking more time to make payments to the lenders of the bankrupt Jet Airways. The consortium had emerged as the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process.
A three-member NCLAT bench said it will pass the order on next Monday and has granted three days' time to the parties to file their written submissions.
"Heard learned counsel for the parties... orders on August 28, 2023. Parties are at liberty to file their short notes of submission of not more than three pages within three days," the appellate tribunal said.
The bench would also decide the consortium's plea to consider a performance bank guarantee of Rs 150 crore as part of the payment of Rs 350 crore.
The consortium had submitted that it will deposit Rs 100 crore by August 31. After that, they would deposit another Rs 100 crore by September 30.
For the remaining Rs 150 crore, it had suggested that lenders can encash a performance bank guarantee lying in their favour having a similar value.
However, Additional Solicitor General N Venkatraman, appearing for the lenders opposed the encashment of the performance bank guarantee.
He also opposed the extension and said that half of Rs 350 crore will go towards clearing the regulatory dues.
Senior advocate Vikas Singh, who was also appearing for the Committee of Creditors (CoC), said the total dues four years before was Rs 7,800 crore when Jet Airways stopped flying and now, it has touched almost Rs 12,000 crore.
Moreover, now the managing committee also has to maintain 11 of the defunct airline's planes, he noted.
Senior advocate Ravi Shankar Prasad appearing for the consortium alleged the CoC was more interested in money than the revival of the company.
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The consortium is to pay Rs 350 crore to the lenders by August 31 but has sought an extension for making the payment. A three-member NCLAT bench said it will pass the order on next Monday and has granted three days' time to the parties to file their written submissions.
"Heard learned counsel for the parties... orders on August 28, 2023. Parties are at liberty to file their short notes of submission of not more than three pages within three days," the appellate tribunal said.
The bench would also decide the consortium's plea to consider a performance bank guarantee of Rs 150 crore as part of the payment of Rs 350 crore.
The consortium had submitted that it will deposit Rs 100 crore by August 31. After that, they would deposit another Rs 100 crore by September 30.
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For the remaining Rs 150 crore, it had suggested that lenders can encash a performance bank guarantee lying in their favour having a similar value.
However, Additional Solicitor General N Venkatraman, appearing for the lenders opposed the encashment of the performance bank guarantee.
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He also opposed the extension and said that half of Rs 350 crore will go towards clearing the regulatory dues.
Senior advocate Vikas Singh, who was also appearing for the Committee of Creditors (CoC), said the total dues four years before was Rs 7,800 crore when Jet Airways stopped flying and now, it has touched almost Rs 12,000 crore.
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Moreover, now the managing committee also has to maintain 11 of the defunct airline's planes, he noted.
Senior advocate Ravi Shankar Prasad appearing for the consortium alleged the CoC was more interested in money than the revival of the company.
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While the consortium emerged as the winning bidder under the insolvency resolution process, the ownership transfer has been hanging fire amid continuing differences between lenders and consortiums.(You can now subscribe to our Economic Times WhatsApp channel)
