Jet Airways case: SC dismisses Jalan Kalrock’s plea for new payment plan

It had also sought a seven-day extension to deposit the ₹150 crore.

While dismissing the plea, the apex noted that it had passed an order on 18 January asking the consortium to pay ₹150 crore by 31 January, or face “serious consequences”.

Additional solicitor general N. Venkatraman, appearing for the lenders, had contested the plea, saying that JKC was trying to reinstate the National Company Law Appellate Tribunal’s (NCLAT) order to encash a bank guarantee, which had already been stayed by the top court.

On 18 January, a three-judge bench, led by chief justice D.Y. Chandrachud, had set aside the NCLAT’s order from 28 August 2023, which had allowed JKC to submit the ₹150 crore performance bank guarantee to fulfill the total obligation of ₹350 crore for completing the pre-conditions of the resolution plan. 

The apex court had also instructed the NCLAT to dispose of all appeals in the case by March, and clarified that the tribunal’s directive to adjust the bank guarantee to meet the payment obligation of ₹350 crore was incorrect and must be stayed.

Lenders have argued that JKC has not fulfilled various pre-conditions necessary to take over Jet Airways, including lacking an Air Operator Certificate (AOC) or any approval from DGCA, slot allotment, bilateral rights, and international traffic rights. Additionally, JKC has not paid dues amounting to ₹272 crore for provident fund and gratuity to workers, violating a previous National Company Law Tribunal (NCLT) order. Lenders asserted that JKC’s failure to meet these conditions makes their resolution plan unworkable and liable to be set aside.

In response, JKC argued that setting aside their plan would leave liquidation as the only option for the airline. He explained that the issue could have been resolved in September 2023, when JKC fulfilled its conditions precedent and handed over ₹350 crore, but lenders challenged this.

On 22 June 2021, the NCLT approved the resolution plan for Jet Airways submitted by the Jalan Kalrock Consortium. The consortium comprises Murari Lal Jalan, a UAE-based non-resident Indian holding shares in Jet Airways in his personal capacity, and Florian Fritsch, who holds shares through his investment holding company Kalrock Capital Partners Ltd, Cayman.

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Published: 02 Feb 2024, 03:41 PM IST