Jet Airways Insolvency Hearing Adjourned to Nov 9

03 Nov 2023 CW Team

The hearing, originally scheduled for September 29, 2022, faced a delay due to the CoC's request for additional time. The ex-employees of Jet Airways had filed an application opposing the earlier approved resolution plan. They claimed that the plan overlooked their interests and neglected their dues.

Jet Airways - once one of India's leading domestic carriers - suspended operations in April 2019 due to an acute cash crunch. Following prolonged negotiations, the airline's CoC approved a resolution plan in June 2021, which involved a consortium of London-based Kalrock Capital and UAE-based Murari Lal Jalan taking over the company's assets.

However, after the plan's approval, Jet Airways' former employees expressed their discontent and approached the NCLAT with their concerns. They argue that the resolution plan fails to prioritize their outstanding salaries, provident fund dues, and other pending payments.

The NCLAT bench, comprising Acting Chairperson Justice A.I.S. Cheema, considered the CoC's plea for more time to deliberate on the employees' objections. The bench noted that it would be unfair to dismiss the grievances without giving them a proper hearing.

The adjournment has sparked renewed concerns among Jet Airways' stakeholders and potential investors awaiting the airline's resolution. With the insolvency hearing now further delayed, the fate of employees and creditors remains uncertain.

Jet Airways, once known for its extensive international network and premium services, played a significant role in the Indian aviation industry. The airline's grounding had a discernible impact on the sector, leaving a void that has yet to be filled by other carriers.

As Jet Airways' insolvency case continues to unfold, industry experts emphasize the importance of a swift resolution. Besides safeguarding the interests of the airline's former employees, a conclusive decision is pivotal for the future of Indian aviation.

While the Jet Airways saga unfolds, the Indian government is taking steps to bolster the country's aviation sector. Measures such as the proposed privatization of Air India aim to attract investment and improve the sector's overall health. Observers hope that these moves will help restore stability and confidence in the industry, ensuring that the void left by Jet Airways' absence is eventually filled.

The National Company Law Appellate Tribunal (NCLAT) has decided to adjourn Jet Airways' insolvency hearing to November 9, 2022. The decision came after Jet Airways' Committee of Creditors (CoC) requested more time to respond to an application submitted by the airline's former employees. The hearing, originally scheduled for September 29, 2022, faced a delay due to the CoC's request for additional time. The ex-employees of Jet Airways had filed an application opposing the earlier approved resolution plan. They claimed that the plan overlooked their interests and neglected their dues. Jet Airways - once one of India's leading domestic carriers - suspended operations in April 2019 due to an acute cash crunch. Following prolonged negotiations, the airline's CoC approved a resolution plan in June 2021, which involved a consortium of London-based Kalrock Capital and UAE-based Murari Lal Jalan taking over the company's assets. However, after the plan's approval, Jet Airways' former employees expressed their discontent and approached the NCLAT with their concerns. They argue that the resolution plan fails to prioritize their outstanding salaries, provident fund dues, and other pending payments. The NCLAT bench, comprising Acting Chairperson Justice A.I.S. Cheema, considered the CoC's plea for more time to deliberate on the employees' objections. The bench noted that it would be unfair to dismiss the grievances without giving them a proper hearing. The adjournment has sparked renewed concerns among Jet Airways' stakeholders and potential investors awaiting the airline's resolution. With the insolvency hearing now further delayed, the fate of employees and creditors remains uncertain. Jet Airways, once known for its extensive international network and premium services, played a significant role in the Indian aviation industry. The airline's grounding had a discernible impact on the sector, leaving a void that has yet to be filled by other carriers. As Jet Airways' insolvency case continues to unfold, industry experts emphasize the importance of a swift resolution. Besides safeguarding the interests of the airline's former employees, a conclusive decision is pivotal for the future of Indian aviation. While the Jet Airways saga unfolds, the Indian government is taking steps to bolster the country's aviation sector. Measures such as the proposed privatization of Air India aim to attract investment and improve the sector's overall health. Observers hope that these moves will help restore stability and confidence in the industry, ensuring that the void left by Jet Airways' absence is eventually filled.