Today,22nd April, Supreme Court issued notice to Jet Airways and JKC following SBI Consortium’s petition challenging NCLAT’s March ruling. The petition contested NCLAT’s decision, prompting legal action against the entities involved. The court’s notice signals a significant development in the ongoing legal battle over Jet Airways’ restructuring. The case highlights complex legal and financial challenges faced by major corporations in India’s aviation sector.
New Delhi: On Monday, the Supreme Court sent notices to Jet Airways and the Jalan Kalrock Consortium following a move by a consortium led by State Bank of India to challenge the NCLAT’s March decision that upheld the transfer of ownership of the bankrupt airline to JKC. This development comes nearly a year after the court initially allowed the ownership transfer to JKC in January of last year.
Today, a Supreme Court bench headed by Chief Justice of India CJI Chandrachud listened to arguments in the case.
Read Also:“SC Dismisses West Bengal Challenge”
The Supreme Court (SC) involved in a legal proceeding concerning the ownership and financial dealings of Jet Airways, specifically regarding a petition by a consortium led by the State Bank of India (SBI).
In front of the apex court, SBI stated that the total admitted claim of the financial creditor amounts to around Rs 7,800 crore. The financial proposal presented by the SRA in the Resolution Plan was Rs 4,783 crore, payable in installments over five years. The initial installment of Rs 350 crore due by March 21, 2022. Despite multiple extensions and exemptions granted to the SRA by the NCLT, NCLAT, and SC, this payment remains outstanding to date.
The appeal stated,
“The Resolution Plan has failed; it was approved by the NCLT on 22.06.2021, yet to date, not even the First Tranche Payment has been received,”
SBI stated,
“Even the NCLAT’s order instructing the SRA to create security by mortgaging Dubai properties within 30 days of its order has not been complied with.”
On March 12, the appellate tribunal ordered lenders to complete the transfer within 90 days from that date. It also instructed JKC to secure an air operator’s certificate within this timeframe. Prior to this, the tribunal had granted additional time to pay Rs 175 crore to SBI, considering that 107 days elapsed since the NCLAT‘s order permitting the ownership transfer.
Read Also:SC sets aside Kerela HC’s order
There specific legal and financial stipulations set by the SC, including a directive for JKC to furnish a bank guarantee, failure of which could result in legal penalties.
Given the complexities and ongoing nature of these proceedings, it’s clear that the future of Jet Airways and the resolution of its financial woes involve significant legal challenges and decisions by both the SC and NCLAT.