 "NCLT allows Jalan-Kalrock consortium to take control of Jet Airways")
The National Company Law Tribunal (NCLT) on Friday allowed an application by the Kalrock-Jalan consortium to implement its resolution plan for Jet Airways and infuse funds to revive the grounded airline.
The tribunal gave the consortium 180 days beyond November 16 to make payments to creditors and employees.
The consortium can now take over the airline, but it could face a legal challenge as lenders may appeal against the tribunal’s order, according to industry sources.
Advocate Rohan Rajyadhyaksha, who appeared for banks to seek two weeks' stay on the implementation of the order, but the tribunal declined his plea.
Jet Airways shut operations in April 2019 and a revival plan submitted by the consortium was approved by the committee of creditors in October 2020. The NCLT approved the plan in June 2021.
As per the plan the consortium was supposed to fulfill five condition precedents before the plan became effective.
In October, Kalrock-Jalan moved the tribunal seeking its confirmation for fulfilling five conditions: validation of air operator certificate, submission of business plan, slot allotment approval, international traffic rights clearance in compliance with law and demerger of ground handling business.
The lenders opposed the application, saying that the conditions precedent were not fulfilled and opposed the transfer of control.
The tribunal gave the consortium 180 days beyond November 16 to make payments to creditors and employees.
The consortium can now take over the airline, but it could face a legal challenge as lenders may appeal against the tribunal’s order, according to industry sources.
Also Read
Jet Airways shut operations in April 2019 and a revival plan submitted by the consortium was approved by the committee of creditors in October 2020. The NCLT approved the plan in June 2021.
As per the plan the consortium was supposed to fulfill five condition precedents before the plan became effective.
In October, Kalrock-Jalan moved the tribunal seeking its confirmation for fulfilling five conditions: validation of air operator certificate, submission of business plan, slot allotment approval, international traffic rights clearance in compliance with law and demerger of ground handling business.
The lenders opposed the application, saying that the conditions precedent were not fulfilled and opposed the transfer of control.
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