The Committee of Creditors (CoC) of Jet Airways, a grounded airline, informed the Supreme Court on July 5 that they have incurred ₹470 crore in expenses since the implementation of the Corporate Insolvency Resolution Process (CIRP), without receiving any return on investment. 

On July 5, Additional Solicitor General Venkatraman, representing the CoC, stated that they are facing monthly expenses of ₹23 crore at present. The Jet Airways workmen association supported the CoC’s claims, revealing that they, too, have not received their pending dues.

During the court hearing on Wednesday, Jet aircraft engineers maintenance welfare association presented a case against the company to recover their unpaid dues. However, the proceedings were adjourned after Chief Justice of India DY Chandrachud, leading the bench, was informed that there are other pending cases related to dues recovery from Jet Airways before different benches of the apex court. The Chief Justice instructed that all the Jet Airways cases should be consolidated and listed for a hearing soon before his bench.

In May 2023, the National Company Law Appellate Tribunal (NCLAT) granted the Jalan Kalrock Consortium, the successful bidder for Jet Airways, an extended timeframe to make payments to the State Bank of India (SBI). The NCLAT recognized that although the National Company Law Tribunal (NCLT) had approved the resolution plan in January, the case reached the NCLAT in March, and the order refusing a stay was passed on March 3. Consequently, the tribunal ruled that Jalan Kalrock is entitled to an exclusion period from November 16, 2022, to March 3, 2023, to fulfill its payment obligations towards SBI.

On January 13, the NCLT permitted the transfer of Jet Airways to the consortium led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. The consortium was also instructed to make payments within 150 days from the commencement of the ownership proceedings, with a deadline of May 15. However, the NCLAT exemption provides the consortium with additional time.

The consortium was expected to make the initial payment to Jet’s lenders before May 15, but it failed to do so, raising concerns that the SBI might enforce the performance bank guarantee of ₹150 crore instead of settling the dues worth ₹175 crore.

The lenders of the airline approached the NCLAT as they opposed the transfer of ownership to the consortium, alleging that the consortium had not fulfilled its obligations.

Jet Airways ceased operations in April 2019 due to mounting losses and a debt of approximately ₹8,000 crore. In October 2020, the airline’s Committee of Creditors (CoC) approved the revival plan proposed by the Jalan-Kalrock consortium.

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