Latest News | Jet Airways Insolvency: NCLAT Adjourns Hearing to Nov 9

New Delhi, Nov 1 (PTI) Insolvency appellate tribunal NCLAT on Wednesday adjourned the hearing on the Jet Airways matter to November 9 over the issue of transfer of ownership of the grounded air carrier to the Jalan Kalrock Consortium (JKC).

When the matter was called for hearing on Wednesday, Additional Solicitor General N Venkataraman informed the two-member bench that the identical matter is also listed before the Supreme Court for hearing next week on November 7.

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Venkataraman, who is representing lenders including SBI and other banks in this matter, requested the bench to adjourn and list it for hearing after that, which was accepted by the bench headed by Chairperson Justice Ashok Bhushan.

Though, senior advocate Krishnendu Dutta appearing for JKC, requested NCLAT to proceed and said the matter before the Supreme Court on November 7 had no direct connection with the matter before the appellate tribunal.

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Lenders of Jet Airways approached the Supreme Court last month over the NCLAT order granting more time to JKC for payment to them.

JKC, the winning bidder for the airline, which stopped flying in April 2019, and later underwent an insolvency resolution process, had to pay Rs 350 crore to lenders by August 31.

Earlier on August 28, NCLAT extended the time till September 30, for Jalan-Kalrock Consortium for payment of Rs 350 crore to the lenders of the bankrupt Jet Airways.

It had accepted the plea of the consortium to extend the timeline and also for adjustment of Rs 150 crore from the performance bank guarantee (PBG) towards payment of Rs 350 crore.

The consortium on September 29, in a statement, had said it had fulfilled its total financial commitment of Rs 350 crore equity as per the court-approved resolution plan.

Later on October 12, creditors had sought more time to file a reply over the compliance affidavit filed by the Jalan-Kalrock Consortium.

The creditors, which suspect the source of Rs 200 crore paid by the Jalan-Kalrock Consortium, had to file a reply over the compliance affidavit filed by the successful bidder.

On October four lenders had told NCLAT that there were apprehensions about the source of funds, which deposited the money for Jalan-Kalrock Consortium's (JKC).

"The payment is not compliant with the resolution plan as it mandates that the money is to be paid through JKC," ASG had submitted.

He had also alleged that there are apprehensions the money could have been laundered and sought some time to file a reply over the JKC's compliance affidavit.

However, the consortium had said only a part of the money came from another source, while the majority of the amount was paid by Murari Lal Jalan and had alleged that lenders were objecting to every move since they did not want to transfer Jet's ownership.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)