The National Company Law Appellate Tribunal (NCLAT) in the Jet Airways case has announced delivering its order on May 30 regarding the plea from the winning bidder, Jalan Kalrock Consortium. The consortium has sought to prevent the lead lender, State Bank of India (SBI), from encashing performance bank guarantees worth ₹150 crore. The tribunal has urged both parties to collaborate for the implementation of the airline’s resolution plan.
Jet Airways, which operated for 25 years, ceased operations on April 18, 2019, due to heavy debt. Insolvency proceedings began during June 2019, and in June 2021, the resolution plan submitted by the consortium was approved by the National Company Law Tribunal (NCLT). However, the plan has not yet been executed, leaving the future of the airline uncertain.
During the hearing, the consortium’s representative, Senior Advocate Ravi Shankar Prasad, stated that ₹50 crore would be deposited in an escrow account and requested NCLAT to instruct SBI not to encash the performance bank guarantees. SBI’s counsel, Senior Advocate Gopal Jain, mentioned that the consortium was required to pay the money by May 15, but the bank had not received any payment.
Prasad highlighted the consortium’s efforts to revive Jet Airways, noting that various permissions from the home ministry and other authorities were necessary. He also mentioned the need to appoint their own directors. The consortium’s response to the expiration of Jet Airways’ Air Operator’s Certificate (AOC) and whether they have sought revalidation of the AOC is currently unknown.
The NCLAT’s decision on the consortium’s plea to restrain SBI from invoking the performance bank guarantee, worth ₹150 crore, will be announced on May 30. The resolution plan’s implementation requires cooperation between the lenders and the consortium. The revival of Jet Airways is facing challenges as the airline deals with employee departures and the expiration of its AOC, which is necessary to resume commercial operations.