Chhawchharia objects to Kapoor using designation of Jet Airways CEO

Ashish Chhawchharia, a member of Jet Airways' monitoring committee, has objected to Sanjiv Kapoor using designation of Jet Airways CEO as the airline is yet to be handed over to the winning bidder Jalan-Kalrock Consortium (JKC) under the resolution plan, sources said on Monday.

In response, JKC has clarified that Kapoor remains as CEO-Designate till the ownership is transferred. In March last year, aviation veteran Kapoor was appointed as the CEO of grounded Jet Airways by JKC. 

The monitoring committee consists of seven members: Chhawchharia is a non-voting member, three voting members selected by lenders and three voting members selected by JKC.

Chhawchharia told JKC about the aforementioned objection in an email. Later in the day, JKC's spokesperson stated: “Mr Sanjiv Kapoor has been designated as the CEO of the to-be revived Jet Airways by JKC after receipt of his security clearance from the Honourable Ministry of Civil Aviation, Government of India. However, until the ownership of Jet Airways is transferred to JKC, he remains CEO-Designate. His mandate is to lead ‘Jet 2.0’ post-handover, and he has been focused on the preparation for that."

In an ongoing case in the National Company Law Tribunal (NCLT), the lenders have stated that JKC has not fulfilled three out of five conditions precedent (CP) mentioned in the NCLT-approved resolution plan and therefore, Jet Airways can't be handed over to JKC right now. This contention by the lenders is confusing because a National Company Law Appellate Tribunal (NCLAT) order of October 21 has stated that JKC has “completed all necessary CPs to the satisfaction of the monitoring committee”.