Companies

NCLAT okays agreement between Dutch court and Jet resolution professional

Forum Gandhi Mumbai | Updated on September 29, 2019 Published on September 29, 2019

The National Company Law Appellate Tribunal (NCLAT) has approved an agreement between a Dutch court and the resolution professional looking into the insolvency process of Jet Airways.

Under the agreement, the Dutch authority has been allowed to initiate liquidation of Jet assets in the Netherlands; however, the administration appointed by the Dutch court shall seek inputs, notify and consult the resolution professional. The Dutch trustee will also be mindful of the Indian proceedings prior to any material decision being taken in the Dutch proceedings.

Jet Airways was declared bankrupt in a Netherlands court after two European creditors filed a a complaint against the airline.

Earlier, the NCLT had rejected the Dutch court’s plea on the grounds that under the Insolvency and Bankruptcy Code the debt resolution process of Jet can be undertaken only in India.

In April, two vendors of Jet Airways from the Netherlands, had filed a petition in a local Dutch court seeking recovery of about ₹280 crore. In July, the NCLAT had agreed to hear a plea filed by the Dutch court seeking access to the financial details of Jet Airways.

On Thursday, the NCLAT said the Dutch administrator will be a part of all CoC meetings and will be given the minutes copies of all the previous and meetings ahead.

The NCLAT also made it clear that the committee of creditors, led by State Bank of India, has no role to play as the agreement reached between the Dutch administrator and the resolution professional of India is on the basis of the direction of the appellate tribunal.

“In spite of the same, unfortunately the ‘committee of creditors’ interfered with the matter and put its view to the ‘resolution professional’, resulting in difference of suggestions. ‘The Dutch trustee’ is equivalent to the ‘resolution professional’ of India, therefore, as per law, has the a right to attend the meeting of the ‘committee of creditors,” the NCLAT said.

Published on September 29, 2019
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