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The NCLAT has dismissed the application of Jet Airways lenders seeking clarifications and removal of certain statements in the October 21 order, on technical grounds.
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Unresolved issues between Jalan-Kalrock and lenders cast cloud over Jet Airways’ revival
While lenders accused the new buyer of failing to meet pre-conditions, JKC says lenders delaying resolution planThe lenders had sought removal of the sentence which stated that the Jalan Kalrock Consortium (JKC) had met all the conditions precedent (CP).
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How the relationship between Jet Airways’ new owners and lenders soured
Now, JKC has approached NCLT to pass orders that ratify that all five conditions precedent under the resolution plan stands completedThe court on Tuesday informed the lawyers appearing on behalf of the lenders that it did not have the authority to clarify or review its own order. The bench said that the lenders could, however, appeal against the order, if required.
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Jalan-Kalrock haven’t fulfilled conditions: Jet lenders
Lenders say the consortium has not complied with the requirements including approval of the business plan from the DGCA and MoCA, slot allotment approval, international traffic rightsIn its October 21 order, NCLAT directed that the provident fund and gratuity had to be paid to the employees of erstwhile Jet Airways. The said application was filed by Jet’s employee union, JAMEWA, in which the lenders were made party too.
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Jet Airways’ staff body files plea for liquidation
Earlier this month, All India Jet Airways Officers and Staff Association sent a legal notice to the airline’s resolution professional, JKC and lendersThe Order in question had recorded that all conditions precedent (CPs) had been met “to the satisfaction of the monitoring committee”.
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Jet Airways’ employees union sends legal notice on PF, gratuity computation
The deadline for computation of payments, according to NCLAT directive, ended on November 21The JKC has filed an application in the NCLT seeking airline’s control on the premise that all CPs have been met by them. The JKC has quoted the said order in its application in the NCLT. However, the lenders have been disputing CP completion in the ongoing matter at NCLT.
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With delay in transferring ownership, Jet Airways to cut salaries to manage cashflow
Currently close to 250 employees work at Jet Airways.Hence, the lenders moved a ‘clarification application’ to NCLAT on December 13 requesting the tribunal to expunge that line from its Order, but their application was dismissed today.
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Revival of Jet Airways hits yet another roadblock
Jalan-Kalrock team tells NCLAT it cannot pay additional ₹250-crore PF, gratuity dues of staffMeanwhile, the NCLT heard the lenders’ arguments in the application filed by JKC. The lawyers appearing on behalf of the lenders argued that the air operators certificate cannot be equated to approval of business plan and must be obtained separately, say lenders of Jet Airways.
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NCLAT orders Jet Airways new owner to clear PF and gratuity dues
NCLAT directed the former resolution professional to “compute the payments to be made to workmen and employees within one month”On international traffic rights, lenders’ lawyers said JKCKC also failed to obtain them as per its resolution plan. They countered that the consortium should not have made this one of the precedents if it intended to restart the operations with only six aircraft, when the law requires the operation of at least 20 aircraft to obtain such clearance.
The bench will hear the said matter on Wednesday.
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