NCLAT Reserves Judgment On Jalan Kalrock's Appeal Over Jet Airways Aircraft Sale
Ace Aviation, a potential buyer, argued that aircraft depreciate rapidly, and delays in the sale render them less usable over time.
The National Company Law Appellate Tribunal reserved its judgement on an appeal filed by the Jalan Kalrock Consortium, challenging the National Company Law Tribunal's order instructing Jet Airways Ltd.'s monitoring committee to resume and finalise the sale of the airline's aircraft.
Ace Aviation, a potential buyer, argued before the appellate tribunal that aircraft depreciate rapidly, and delays in the sale render them less usable over time.
Ace also highlighted 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 National Company Law Tribunal granted relief to Ace Aviation, the 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 the Jalan Kalrock Consortium, the successful resolution applicant.
Ace Aviation, a Malta-based company associated with the Challenge Group, had sought the intervention of the insolvency court after the monitoring committee of Jet Airways temporarily suspended the aircraft sale amid legal conflicts involving Jalan Kalrock Consortium and its lenders.
