New Delhi: The Supreme Court on Wednesday reserved its judgement on a plea of State Bank of India 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 comprising Chief Justice of India D Y Chandrachud and Justices JB Pardiwala and Manoj Misra heard submissions of Additional Solicitor General (ASG) N Venkatraman, appearing for the appellant banks and others, and senior advocate Mukul Rohatgi, representing the consortium, before reserving the judgement.
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 insolvency the NCLAT had also directed the lenders of Jet Airways to adjust the Rs 150 crore paid by the consortium as performance bank guarantee (PBG).
The top court was hearing an appeal of State Bank of India, Punjab National Bank and JC Flowers Asset Reconstruction Private Limited challenging the March 12 verdict of the NCLAT.
The ASG submitted that the consortium, the successful resolution applicant (SRA), had defaulted on payments prescribed under the resolution plan.
The law officer said that the consortium was four years behind on its payment schedule at the moment.
Rohatgi, appearing for the consortium, represented by law firm Karanjawala and Company, opposed the submissions of the law officer and it was the creditors who delayed the resolution process.
Jet Airways, which has remained grounded since April 2019, had in September, 2023, had 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 as per 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.
After grounding in 2019 owing to a severe liquidity crisis at that time, the full-service carrier underwent an insolvency resolution process. However, it was having a dispute with the lender.
In 2021, JKC emerged as the successful bidder of Jet Airways.
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 insolvency the NCLAT had also directed the lenders of Jet Airways to adjust the Rs 150 crore paid by the consortium as performance bank guarantee (PBG).
The top court was hearing an appeal of State Bank of India, Punjab National Bank and JC Flowers Asset Reconstruction Private Limited challenging the March 12 verdict of the NCLAT.
The ASG submitted that the consortium, the successful resolution applicant (SRA), had defaulted on payments prescribed under the resolution plan.
The law officer said that the consortium was four years behind on its payment schedule at the moment.
Rohatgi, appearing for the consortium, represented by law firm Karanjawala and Company, opposed the submissions of the law officer and it was the creditors who delayed the resolution process.
Jet Airways, which has remained grounded since April 2019, had in September, 2023, had 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 as per 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.
After grounding in 2019 owing to a severe liquidity crisis at that time, the full-service carrier underwent an insolvency resolution process. However, it was having a dispute with the lender.
In 2021, JKC emerged as the successful bidder of Jet Airways.
You may also like
Starlink Sets Its Sights on India: Musk's Vision for Better Connectivity
SCO meeting: Pakistan PM Shehbaz Sharif stays silent on Kashmir
'My son has come back': Murdered fan Renukaswamy's father as grandson born
Alastair Cook, Neetu David And AB De Villiers Inducted Into The ICC Hall Of Fame As Class Of 2024
'Stylish' ankle wellies are 'so comfortable and a godsend in wet weather' - and under £20
Diwali BONANZA! Haryana anganwadi workers salary hike announced ahead of festival
YSRCP leader Sajjala Ramakrishna Reddy summoned for questioning in TDP office attack case
Jagmeet Singh calls for sanctions against Indian diplomats and ban on RSS amid diplomatic row
Ex-Liverpool player names the team to stop Man City - but it's not the Reds
Cabinet approves 3 pc hike in DA of central govt employees
Liverpool's Conor Bradley 'had goosebumps' after setting new Northern Ireland record
Conor McGregor fight date shot down immediately by opponent he called out
UAE: Insurers lost up to more than Dh9 billion in heavy April rains this year
Pakistan calls for expansion of China's Belt and Road Initiative
Rohit Sharma has the responsibility of continuing the reign of 36 years, New Zealand will be tested again.
Remove burn marks from a cooker using 1 simple item - not oven cleaner or vinegar
British influencer dies after falling from 192 meters high Castilla-La Mancha bridge
Why is BCCI preparing to remove Harmanpreet Kaur? 5 big reasons came to light including Team India's defeat.
Every trophy Thomas Tuchel has won as ex-Chelsea boss takes charge of England
Trouble Sleeping? Say Goodbye to Insomnia with These 8 Simple Yet Effective Tips