NCLAT Dismisses Jalan Kalrock Consortium's Plea Against Jet Airways Aircraft Sale
The NCLAT clarified that the sale of the aircraft would not impact the rights of any stakeholders involved in the airline.
The National Company Law Appellate Tribunal dealt a setback to Jalan Kalrock Consortium, the successful bidder for the revival of Jet Airways (India) Ltd. on Friday. The consortium's plea challenging the sale of the airline's aircraft was dismissed by the tribunal.
The NCLAT clarified that the sale of the aircraft would not impact the rights of any stakeholders involved in the airline. The proceeds from the sale are to be deposited in an escrow account and will be distributed in accordance with the resolution plan.
On Dec. 12, the NCLAT reserved judgment on an appeal filed by Jalan Kalrock Consortium. This appeal contested the National Company Law Tribunal's order instructing Jet Airways' monitoring committee to resume and finalise the sale of the airline's aircraft.
Ace Aviation Holdings Inc. had argued before the appellate tribunal that aircraft depreciate rapidly, and delays in the sale would render them less usable over time. Ace also emphasised that the NCLT had directed the sale proceeds of Rs 400 crore to be deposited in an escrow account, allowing the involved parties to mutually decide on distribution.
In October, the NCLT had granted relief to Ace Aviation, a prospective buyer for Jet Airways' grounded aircraft. This decision was based on an agreement between Ace and the monitoring committee of Jet Airways.
The aircraft sale had faced a halt in November 2022, due to disputes between Jet Airways lenders and Jalan Kalrock Consortium, the successful resolution applicant.
Ace Aviation sought intervention from the insolvency court, after the monitoring committee temporarily suspended the aircraft sale, amid legal conflicts involving Jalan Kalrock Consortium and its lenders.
