NEW DELHI: Rekindling fresh hopes for the revival of grounded airline Jet Airways, the National Company Law Appellate Tribunal (NCLAT) on Tuesday upheld its resolution plan and approved the transfer of its ownership to Jalan Kalrock Consortium, the successful bidder.
The NCLAT has directed the lenders to complete transfer of ownership within 90 days. It has also directed them to adjust the Rs 150 crore paid by the consortium as performance bank guarantee.
The lenders of Jet Airways and Jalan Kalrock Consortium (JKC), the successful bidder, are in a legal tussle for more than a year over the transfer of the management of the grounded carrier.
Earlier, the lenders had approached the Supreme Court, which had declined to interfere in the matter and had directed the NCLAT to take a decision on the issue. The NCLAT directed the managing committee, consisting of lenders led by SBI, to create security on immovable properties as offered by the successful resolution applicant (SRA) JKC within 30 days.
Upon creation of such security, lenders were directed to adjust the performance bank guarantee of Rs 150 crore towards the payment of the same amount from the SRA.
The NCLAT has directed that within 30 days of creation of security, lenders will issue shares of the airline to SRA and hand over the company. Within 30 days from the date of such handover, the SRA and lenders will be required to complete payments to creditors as per the approved resolution plan, the NCLAT said.
Jet Airways can start business and operations, subject to regulatory approvals, after handover to SRA, it added. Jet Airways in September 2023 had said JKC had completed an additional infusion of Rs 100 crore in the carrier. With this infusion, JKC had claimed it has fulfilled its financial commitment of Rs 350 crore, as per the court-approved plan.