+
SC to verdict on Nov 7 on plea against NCLAT
ECONOMY & POLICY

SC to verdict on Nov 7 on plea against NCLAT

The Supreme Court is scheduled to pronounce its verdict on a plea of State Bank of India (SBI) and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC). A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra will pronounce the verdict which was reserved on October 16. The NCLAT had on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to the JKC. The appellate tribunal further directed the Jet Airways monitoring committee to complete the transfer of ownership within 90 days. Besides, the NCLAT had also directed the lenders of Jet Airways to adjust Rs 150 crore paid by the consortium as performance bank guarantee (PBG). The SBI, Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Private Limited have challenged the March 12 verdict of the NCLAT. The consortium had contended that the creditors, including the SBI, were unjustifiably seeking to liquidate Jet Airways. The banks had referred to certain media reports and said the public lenders are unjustifiably being held responsible for the closure of private airlines and the companies are facing insolvency proceedings. The JKC argued that the obligations under the resolution plan were contingent upon the occurrence of the effective date, which marks the initiation of the consortium's obligation to make payments under the plan. It had opposed the plea of lenders that the consortium defaulted and made the resolution plan unworkable. The consortium has taken all necessary positive steps towards the implementation of the resolution plan and that it is now up to the lenders to fulfil their obligations, it had said. The banks said the JKC failed to meet its financial obligations, including the infusion of Rs 350 crore within the stipulated 180-day period from the effective date under the resolution plan. The lenders had further contended that the consortium failed to fulfil other key obligations, such as infusing Rs 150 crore in cash and mortgaging three Dubai properties as required under the resolution plan. On October 15, the consortium opposed the submissions of the law officer and said it was the creditors who had delayed the resolution process. It had said the revival of Jet Airways was a commercial endeavour, subject to various external factors and the consortium cannot be held solely liable for delays caused by security clearances and other procedural hurdles. The NCLAT, in its verdict, had approved the transfer of its ownership to the consortium by upholding the NCLT Mumbai's verdict of January 13, 2023. The NCLAT had also directed the lenders of Jet Airways to adjust the Rs 150 crore paid by the consortium as PBG. "The PBG of Rs 150 crore, which is lying with the monitoring committee/MC lenders, shall be adjusted towards the first tranche payment of Rs 350 crore as Rs 200 crore have already been paid by the SRA (JKC). By adjustment of PBG as per the resolution plan, the first tranche of payment of Rs 350 crore shall be completed," it had said. Jet Airways, which has remained grounded since April 2019, had in September, 2023 said the new proposed promoters -- the Jalan-Kalrock consortium -- had completed an additional infusion of Rs 100 crore into the carrier. With this infusion, it had said, JKC has fulfilled its total financial commitment of Rs 350 crore equity according to the court-approved resolution plan. The consortium has fulfilled all other commitments to take control of the airline, it had added. The airline had also said it was looking to re-launch operations from 2024.

The Supreme Court is scheduled to pronounce its verdict on a plea of State Bank of India (SBI) and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC). A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra will pronounce the verdict which was reserved on October 16. The NCLAT had on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to the JKC. The appellate tribunal further directed the Jet Airways monitoring committee to complete the transfer of ownership within 90 days. Besides, the NCLAT had also directed the lenders of Jet Airways to adjust Rs 150 crore paid by the consortium as performance bank guarantee (PBG). The SBI, Punjab National Bank (PNB) and JC Flowers Asset Reconstruction Private Limited have challenged the March 12 verdict of the NCLAT. The consortium had contended that the creditors, including the SBI, were unjustifiably seeking to liquidate Jet Airways. The banks had referred to certain media reports and said the public lenders are unjustifiably being held responsible for the closure of private airlines and the companies are facing insolvency proceedings. The JKC argued that the obligations under the resolution plan were contingent upon the occurrence of the effective date, which marks the initiation of the consortium's obligation to make payments under the plan. It had opposed the plea of lenders that the consortium defaulted and made the resolution plan unworkable. The consortium has taken all necessary positive steps towards the implementation of the resolution plan and that it is now up to the lenders to fulfil their obligations, it had said. The banks said the JKC failed to meet its financial obligations, including the infusion of Rs 350 crore within the stipulated 180-day period from the effective date under the resolution plan. The lenders had further contended that the consortium failed to fulfil other key obligations, such as infusing Rs 150 crore in cash and mortgaging three Dubai properties as required under the resolution plan. On October 15, the consortium opposed the submissions of the law officer and said it was the creditors who had delayed the resolution process. It had said the revival of Jet Airways was a commercial endeavour, subject to various external factors and the consortium cannot be held solely liable for delays caused by security clearances and other procedural hurdles. The NCLAT, in its verdict, had approved the transfer of its ownership to the consortium by upholding the NCLT Mumbai's verdict of January 13, 2023. The NCLAT had also directed the lenders of Jet Airways to adjust the Rs 150 crore paid by the consortium as PBG. The PBG of Rs 150 crore, which is lying with the monitoring committee/MC lenders, shall be adjusted towards the first tranche payment of Rs 350 crore as Rs 200 crore have already been paid by the SRA (JKC). By adjustment of PBG as per the resolution plan, the first tranche of payment of Rs 350 crore shall be completed, it had said. Jet Airways, which has remained grounded since April 2019, had in September, 2023 said the new proposed promoters -- the Jalan-Kalrock consortium -- had completed an additional infusion of Rs 100 crore into the carrier. With this infusion, it had said, JKC has fulfilled its total financial commitment of Rs 350 crore equity according to the court-approved resolution plan. The consortium has fulfilled all other commitments to take control of the airline, it had added. The airline had also said it was looking to re-launch operations from 2024.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?