JKC will get ownership of Jet Airways in 90 days: NCLAT upheld the order of Law Tribunal, JKC will have to get air operator certificate.
The National Company Law Appellate Tribunal i.e. NCLAT has upheld the decision to hand over Jet Airways to Jalan-Kalrock Consortium (JKC). The National Company Law Tribunal i.e. NCLT had approved the ownership transfer in January last year.
In February 2023, lenders of Jet Airways had approached NCLAT against the order of ownership transfer of NCLT. In June 2021, JKC consortium won the Jet Airways bid. Since then the process of revival of Jet is going on.
Jet Airways was once one of the largest private airlines in India and had the status of the largest private airline in the South Asian nation. Then, due to debt burden, Jet Airways was grounded on 17 April 2019.
Ownership will have to be transferred within 90 days
The Appellate Tribunal has directed the monitoring committee to transfer the ownership within 90 days. Whereas Jalan-Kalrock Consortium will have to obtain Air Operator Certificate during these 90 days. The Appellate Tribunal has also given instructions for this.
The Appellate Tribunal has also allowed adjustment from the performance bank guarantee of Rs 150 crore placed with the monitoring committee for payment of the first installment of Rs 350 crore. Payment of Rs 200 crore has already been made.
JKC had deposited this Rs 200 crore in two installments till September last year. However, the lenders had argued that JKC had not complied with the terms of the resolution plan ranging from payment of airport dues to payment of the first tranche.
Airline operations ceased on 17 April 2019
Jet Airways was shut down on 17 April 2019 amid growing financial troubles. State Bank of India had given the maximum loan to this airline, hence the bank had initiated insolvency proceedings against the company before NCLT Mumbai.
Jet was later included in the resolution process. In June 2021, the Jalan-Kalrock consortium won the Jet Airways bid under the bankruptcy resolution process of NCLT. Since then there was a dispute going on between JKC and lenders regarding ownership transfer.
JKC had claimed that the lenders were not starting the process of transfer of the airline. Lenders argued that JKC has not infused any funds yet.
