NCLAT to Decide on Jalan Kalrock Consortium’s Plea Against SBI in Jet Airways Case on May 30

The NCLAT, in the Jet Airways case, stated that it will decide on May 30 whether to restrain SBI, the lead lender, from cashing performance bank guarantees worth Rs 150 crore as requested by the winning bidder, Jalan Kalrock Consortium. The appellate tribunal also urged both parties to cooperate in implementing the resolution plan for the airline amidst ongoing disputes between the lenders and the consortium.

Jet Airways

Jet Airways, burdened by debt, ceased operations on April 18, 2019, after 25 years of service. The insolvency resolution proceedings began in June 2019, and the NCLT approved the consortium’s resolution plan in June 2021. However, the non-execution of the plan has created uncertainty regarding the future of the once-renowned airline.

The National Company Law Appellate Tribunal (NCLAT) concluded its hearing on Monday regarding the consortium’s interim application against SBI, the lead lender for Jet Airways, concerning the encashment of guarantees. The two-member bench declared that it would issue the order on the consortium’s petition on May 30 and emphasized that both parties must actively proceed with the implementation of the resolution plan.

Representing the consortium, Senior Advocate Ravi Shankar Prasad mentioned their intention to deposit Rs 50 crore in an escrow account and requested the NCLAT to instruct SBI not to encash the performance bank guarantees they had submitted. On behalf of SBI, senior advocate Gopal Jain pointed out that the consortium was supposed to make the payment by May 15, but the bank had not received any funds.

Prasad stressed that the consortium is actively working towards the revival of Jet Airways and highlighted the need to obtain various permissions from the home ministry and other authorities. He also mentioned the consortium’s intention to appoint their own directors.

In the meantime, Jet Airways’ Air Operator’s Certificate (AOC) expired on Friday, and the consortium has not yet provided any information on whether the airline has applied for the revalidation of the AOC.

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