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The creditors of Jet Airways have urged the Supreme Court to wind up the grounded airline, claiming that the approved resolution plan is not workable.
The Committee of Creditors (CoC), represented by additional solicitor general N Venkatraman, informed the apex court that the Jalan Kalrock Consortium, which was granted ownership of the airline, has failed to inject any funds into the company. Furthermore, the Directorate General of Civil Aviation (DGCA) has declined to renew Jet Airways’ Air Operator’s Certificate, which expired in May.
The consortium has repeatedly missed its fund-infusion target, and has obtained extensions from tribunals, raising concerns among the CoC. Venkatraman warned that if the CoC is to recover any of its dues, the company may have to be liquidated. The court has called for a response from Jalan Kalrock and scheduled the next hearing in two weeks.
The CoC, led by State Bank of India, along with other financial institutions such as Punjab National Bank, IDBI, Canara Bank, and ICICI Bank, has lent a total of ₹8,000 crore. They revealed to the court that since the implementation of the Corporate Insolvency Resolution Process (CIRP), they have incurred expenses of ₹470 crore without receiving any returns on their investment. Additionally, the creditors are incurring monthly expenses of ₹23 crore.
Dues unpaid
Supporting the CoC’s stance, the Jet Airways Workmen Association highlighted that their dues remain unpaid. The association represents the interests of the airline’s employees.
In May 2023, the National Company Law Appellate Tribunal (NCLAT) granted the Jalan Kalrock Consortium an extended deadline to make payments to the State Bank of India, despite opposition from the lenders. The NCLAT ruling favored the consortium, stating that they were entitled to exclude the period from November 16, 2022, to March 3, 2023, during which the ownership hearing was ongoing. The consortium was initially instructed by the National Company Law Tribunal (NCLT) to make payments by May 15, 2023, but the NCLAT exemption allowed them more time.
Jet Airways, burdened by mounting losses and a debt of approximately ₹8,000 crore, was grounded in April 2019. In October 2020, the CoC approved the revival plan submitted by the Jalan-Kalrock consortium, led by Kalrock Capital based in London and entrepreneur Murari Lal Jalan based in the UAE.
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