The Supreme Court is set to deliver a crucial verdict on the ownership of the beleaguered Jet Airways. The judgment, scheduled for November 7, will address the lenders' plea challenging the transfer of ownership of the grounded airline to the Jalan Kalrock Consortium (JKC). The case has been presided over by a bench comprising Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra. The Committee of Creditors (CoC), led by the State Bank of India, has expressed reservations about the proposed revival plan, arguing that it does not serve the best interests of the lenders.
The CoC has also questioned the National Company Law Appellate Tribunal (NCLAT) order that upheld the resolution plan. Earlier this year, in January, the Supreme Court had directed JKC, the successful resolution professional bidder for the cash-strapped airline, to deposit Rs 150 crore in an escrow account jointly held by the State Bank of India and JKC. The court had warned of legal repercussions if JKC failed to provide the bank guarantee.
Furthermore, the apex court had instructed the NCLAT to decide by the end of March 2024 on the lenders' plea challenging the ownership of the grounded Airways to JKC. The Jalan Kalrock Consortium had committed to an infusion of Rs 350 crore equity as per the court-approved resolution plan to assume ownership of Jet Airways. A three-member bench of the NCLAT had consented to an adjustment of Rs 150 crore from the Performance Bank Guarantee (PBG) towards the payment of Rs 350 crore.
The appellate tribunal had also accepted an undertaking given by the consortium committing to pay Rs 100 crore by August 31 last year and another Rs 100 crore by September 30, 2023. Jet Airways, once a titan in India's aviation industry, was forced to enter the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC) in June 2019 due to severe financial distress.
The airline's downfall was a significant blow to the industry, and its potential revival has been a topic of intense speculation and anticipation. The Jalan Kalrock Consortium's strategy to revive the airline remains unchanged. The new promoters are determined to re-establish the operations of the airline and have it up and running in 2024. Further announcements regarding the launch date of Jet Airways are expected in the coming weeks.
The consortium plans to restart Jet Airways in 2024, beginning with a small fleet of aircraft and gradually expanding its operations. The revival of Jet Airways is seen as a positive development for the Indian aviation industry. The airline was once one of the leading airlines in India, and its return is expected to increase competition and provide more options for travelers.
(With inputs from IANS)
