A two-member bench of National Company Law Appellate Tribunal (NCLAT) said they would have to abide by the results of the appeals filed before it. Insolvency appellate tribunal NCLAT on Monday said the implementation of Jalan-Kalrock consortium resolution plan for Jet Airways would be subject to the outcome of its order over the appeals filed before it.
In October 2020, the airline’s Committee of Creditors (CoC) approved the resolution plan submitted by the consortium of the UK’s Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan. The plan was later cleared by the Mumbai bench of the National Company Law Tribunal (NCLT). In its petition before the National Company Law Appellate Tribunal (NCLAT), the association has prayed for complete payments of the gratuity, unpaid wages, privilege leave encashment, bonus from April 2018 to June 2019 and retrenchment compensation to all workers and employees, the statement said. Meanwhile, counsel appearing for Jalan-Kalrock consortium submitted before the appellate tribunal it shall withhold the ‘BKC’ Property which is valuable property and till the next date, shall not take any steps for alienation of the said property.
Earlier, the Mumbai bench of the NCLT allowed Jet Airways to sell its premises in Bandra Kurla Complex (BKC) to settle Rs 360 crore dues of mortgage lender HDFC, clear overseas debt and cover corporate insolvency resolution process costs. The NCLAT direction came over a batch of petitions filed by Association of Aggrieved Workmen of Jet Airways, Punjab National Bank, TLD MEAI FZE, Jet Aircraft Maintenance Engineers Welfare Association, Bhartiya Kamgar Sena and Concor Air.
“These Appeals have been filed against the Order dated June 22, 2021, passed by the Adjudicating Authority (NCLT) approving the resolution plan. It has been submitted before us that the effective date has been fixed as May 28, 2022, and the process of the Implementation of the Plan has begun,” said NCLAT.
Counsel for the Appellants expressed their apprehension that in event their claim is allowed and the plan is implemented, their claim may not be met by the Successful Resolution Applicant of Jet Airways, the NCLAT order noted. Earlier this month, Jet Airways’ air operator certificate was revalidated by the aviation regulator DGCA, paving the way for the relaunch of the airline, which was grounded in April 2019 due to financial woes.
The airline was earlier owned by Naresh Goyal and Gulf carrier Etihad. Due to financial crisis the full service carrier shuttered operations in April 2019. Later, a consortium of lenders, led by State Bank of India (SBI), filed an insolvency petition in June 2019 to recover outstanding dues worth over ₹8,000 crore.
Appeals have been fixed for hearing on July 5, 2022 and NCLT make it clear that implementation of the resolution plan shall abide by the result of these Appeals, said NCLAT bench headed by Chairperson Justice Ashok Bhushan.
HON’BLE MR JUSTICE ASHOK BHUSHAN
Chairperson NCLAT, Mumbai
