DELHI- The Committee of Creditors (CoC) of the grounded airline Jet Airways (9W) informed the Supreme Court on July 5 that it has expended Rs 470 crores since the implementation of the Corporate Insolvency Resolution Process (CIRP) without seeing any return on investment.
Additional Solicitor General Venkatraman, representing the CoC, conveyed to the court that they are incurring expenses amounting to Rs 23 crore per month.
Similarly, the Jet Airways workmen association also corroborated the CoC’s claim, highlighting that their dues remain unpaid.
Jet Airways CoC Told SC
During a hearing on a case brought by the Jet Aircraft Engineers Maintenance Welfare Association seeking recovery of their dues, the apex court was informed about the pending cases related to the recovery of dues from Jet Airways.
Chief Justice of India DY Chandrachud, leading the bench, directed that all Jet Airways-related cases be grouped together. Further listed before his bench for expeditious hearing.
In May 2023, the National Company Law Appellate Tribunal (NCLAT) provided the Jalan Kalrock Consortium, which emerged as the successful bidder for taking over Jet Airways, an extension to make payments to the State Bank of India (SBI).
The NCLAT recognized that despite the National Company Law Tribunal (NCLT) approving the resolution plan in January, the case was heard by the NCLAT in March, resulting in the order of refusal of stay on March 3.
Consequently, the tribunal ruled that Jalan Kalrock should be exempted from November 16, 2022, to March 3, 2023, to fulfill its payment obligations to SBI.
Time Extension for Acquisition
On January 13, NCLT permitted the transfer of Jet Airways to the consortium led by Kalrock Capital. It is based in London, and entrepreneur Murari Lal Jalan from the UAE.
The NCLT also set a deadline of May 15, 150 days from initiating the ownership proceedings. Subsequently, for the consortium to make payments. However, the NCLAT exemption allows for additional time to meet these obligations.
Jet Airways was grounded in April 2019 due to escalating losses and debt of approximately Rs 8,000 crore. In October 2020, the airline’s CoC approved the revival plan presented by the JKC.
However, lenders of the airline opposed the ownership transfer to the consortium. Further, alleging that the consortium had not fulfilled its obligations.
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