Today, On 16th October, The Supreme Court reserved its judgment on an appeal by SBI and other creditors challenging the National Company Law Appellate Tribunal’s (NCLAT) approval of the ownership transfer of Jet Airways to the Jalan Kalrock Consortium. Jet Airways, which has been under insolvency proceedings since 2019, is planning to restart operations in 2024.
New Delhi: The Supreme Court on Wednesday reserved its judgment on a plea filed by the State Bank of India and other creditors, challenging the National Company Law Appellate Tribunal’s (NCLAT) decision to uphold the resolution plan for Jet Airways.
The NCLAT approved the transfer of the airline’s ownership to the Jalan Kalrock Consortium (JKC).
A bench comprising Chief Justice of India D.Y. Chandrachud and Justices J.B. Pardiwala and Manoj Misra heard arguments from Additional Solicitor General N. Venkatraman, representing the appellant banks, and senior advocate Mukul Rohatgi, representing the consortium, before reserving its decision.
The NCLAT’s March 12 ruling supported the resolution plan and instructed the Jet Airways monitoring committee to finalize the ownership transfer within 90 days.
In addition to the insolvency resolution, the NCLAT directed Jet Airways’ lenders to adjust the Rs 150 crore paid by the Jalan Kalrock Consortium (JKC) as a performance bank guarantee (PBG).
The Supreme Court was hearing an appeal filed by the State Bank of India, Punjab National Bank, and JC Flowers Asset Reconstruction Private Limited challenging the NCLAT’s March 12 ruling. Additional Solicitor General N. Venkatraman argued that the consortium, the successful resolution applicant, had defaulted on the payment obligations outlined in the resolution plan.
Venkatraman submitted,
“The consortium is currently four years behind on its payment schedule,”
However, senior advocate Mukul Rohatgi, representing the consortium, countered that it was the creditors who caused delays in the resolution process.
Rohatgi, backed by law firm Karanjawala and Company, highlighted that Jet Airways announced in September 2023 that the consortium had completed an additional Rs 100 crore infusion, meeting its total financial commitment of Rs 350 crore as per the court-approved resolution plan.
The consortium further stated it had fulfilled all necessary conditions to assume control of the airline and aimed to relaunch operations in 2024. Jet Airways, grounded since April 2019 due to a severe liquidity crisis, underwent an insolvency resolution process, with JKC emerging as the successful bidder in 2021.