Logistics

Jet Airways case: NCLAT agrees to hear Dutch court’s plea

Our Bureau New Delhi | Updated on July 12, 2019 Published on July 12, 2019

Asks lenders to respond to request within two weeks

The National Company Law Appellate Tribunal (NCLAT), on Friday, agreed to hear a plea filed by a Dutch court seeking access to the financial details of Jet Airways. Staying an order by the National Company Law Tribunal, the NCLAT Bench headed by Chairman Justice SJ Mukhopadhaya asked the lenders to the airline to file a response to the Dutch court’s plea within two weeks.

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.

Around the same time, the lenders to Jet Airways dragged the airline to the NCLT to initiate insolvency proceedings. This raised a key question as to whether parallel debt recovery cases can be heard against Jet in two countries.

The NCLT’s Mumbai Bench ruled that only it had the jurisdiction over the case and rejected the Dutch court’s request for access to Jet Airways’ financials.

Staying the NCLT order, the NCLAT Bench asked the Dutch court to assist the proceedings. The Dutch court has appointed lawyer Rocco Mulder as its representative.

Mulder assured the NCLAT that he is ready to give an undertaking that there will not be any action on Jet Airways’ assets confiscated in the Netherlands till the Indian court gives a ruling on the issue.

The NCLAT asked Mulder to compile a list of claims and to ensure that the airline’s assets in their possession are not sold. The NCLAT has asked the lenders to suggest a procedure that could be followed without any conflict of interest of stakeholders in both the countries.

The next hearing in the case has been set for August 21.

Published on July 12, 2019

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