MUMBAI— The National Company Law Tribunal (NCLT) has rejected the liquidator’s plea seeking a refund of around ₹500 crore from Boeing over advance payments for aircraft that were never delivered.
The case involved grounded Jet Airways (Ex-9W) and was decided by the Mumbai bench of the tribunal on September 11, 2026. The NCLT said the dispute between Jet Airways and Boeing was fundamentally contractual and involved disputed questions of fact and law.
It held that determining whether Boeing could retain, forfeit or set off the advance payments would require examination of the aircraft purchase agreements and a full-fledged trial, which falls outside the tribunal’s limited jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code (IBC).
Jet Airways Boeing Deal
Jet Airways entered into agreements with Boeing in 2013 for the purchase of Boeing 737-8 and 787-9 aircraft. The airline paid Boeing $92.13 million in advance and pre-delivery payments toward those aircraft, which were ultimately never supplied.
Boeing suspended its obligations under the agreements in May 2019 after Jet Airways failed to make certain payments.
The airline entered the Corporate Insolvency Resolution Process (CIRP) the following month, while Boeing later terminated the aircraft purchase agreements in December 2020.
During the insolvency proceedings, Boeing filed a claim for amounts it said were owed under the aircraft agreements.
After adjusting the advance payments, its claim was admitted at ₹721.19 crore and subsequently increased to ₹873.78 crore during liquidation because of currency fluctuations.
NCLT Rejects Refund
After Jet Airways entered liquidation, the liquidator sought recovery of the $92.13 million advance, arguing that the money formed part of the airline’s liquidation estate under Section 36 of the IBC.
The liquidator also relied on Regulation 29 of the IBBI (Liquidation Process) Regulations, 2016, in challenging Boeing’s treatment of the advance payments.
Boeing opposed the application, arguing that the amount had already been adjusted against its larger admitted claim and therefore stood extinguished through set-off.
The NCLT said it could not determine whether Boeing was justified in suspending or terminating the agreements, forfeiting the advance payments or applying them against its claim without examining the underlying contracts.
The tribunal noted that the agreements themselves were not placed on record because of confidentiality concerns.
Contract Dispute Remains
The two-member bench, comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, held that the dispute could not be treated as one arising directly from the insolvency process.
The tribunal said the competing claims first required contractual adjudication and crystallisation.
Since resolving them would involve evaluating the agreements, evidence and disputed questions of law and fact, the NCLT concluded that Section 60(5) could not be used to conduct such a full trial.
Jet Airways was ordered into liquidation by the Supreme Court on November 7, 2024, after the Jalan Kalrock Consortium failed to implement the approved revival plan.
The NCLT subsequently commenced the liquidation process on November 26, 2024, The Hindu Business Line flagged.
The latest ruling therefore leaves the underlying contractual dispute over Boeing’s treatment of the $92.13 million unresolved rather than determining that the advance must be returned.
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