Jet Airways
Jet Airways: NCLT to hear Jalan Kalrock Consortium's plea to stop SBI from invoking Rs 175 cr bank guarantee
New Delhi: The National Company Law Appellate Tribunal (NCLAT) will hear a plea made by Jalan Kalrock Consortium (JKC), the successor to Jet Airways management, on May 22. JKC is seeking directions to prevent the State Bank of India (SBI) from invoking its bank guarantee of Rs 175 crore, media reports said.
During the NCLAT hearing on May 19, senior advocate Ravi Shankar Prasad, representing the consortium, requested an interim injunction to halt SBI from invoking the bank guarantee, Moneycontrol reported.
Gopal Jain, senior advocate representing SBI, informed the court that the consortium was required to make certain dues payments to the bank by May 15, but the payment has not been received, the report said.
Prasad argued that the consortium is diligently working towards fulfilling its commitments. However, due to time constraints, the tribunal decided to adjourn the case until May 22.
As per the order issued by the National Company Law Tribunal (NCLT) on January 13, the Consortium was expected to make the first installment of payments to Jet's lenders before May 15.
However, the consortium has not yet made the payments, which has led to concerns that SBI may invoke the bank guarantee of Rs 175 crore as compensation for the outstanding dues.
If the outstanding payments are not cleared, the ownership of the airline will not be transferred to the consortium. It is worth noting that the air operator's certificate of Jet Airways is set to expire on May 19.
In January, the National Company Law Tribunal (NCLT) granted permission for the transfer of Jet Airways' ownership to the Jalan Kalrock Consortium (JKC) after concluding that the conditions had been met.
The NCLT set November 16, 2022, as the effective date for the resolution plan.
However, the lenders of the airline opposed the ownership transfer to the consortium and approached the National Company Law Appellate Tribunal (NCLAT).
They claimed that the consortium had not fulfilled its obligations and argued against the transfer of ownership.
Jet Airways was grounded in April 2019 due to piling losses and a debt burden of approximately Rs 8,000 crore.
In October 2020, the airline's Committee of Creditors (CoC) approved the revival plan submitted by the Jalan-Kalrock consortium.
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