Mint Explainer: Complex legal battles hold Jet Airways’ return

livemint.com:

covid-19 pandemic and legal complexities raised by various stakeholders. In October 2020, the Murari Lal Jalan-Kalrock Capital consortium emerged victorious in the bid, earning approval from the Committee of Creditors (CoC) and the NCLT. Their revival plan involves injecting ₹475 crore within the first two years and raising ₹125 crore through the sale of non-core assets by the end of the first year.

However, the revival process has been stuck since. Mint examines the prevailing legal disputes that are obstructing Jet Airways' efforts to revive and resume operations. The successful bidder, Kalrock Capital Murari Lal Jalan consortium (JKC), faced opposition from former lenders led by SBI in the NCLAT.

SBI contested the NCLT Mumbai bench declaration of the consortium as the winning bidder, arguing that the consortium hadn't fulfilled the outlined conditions in the resolution plan, including settling dues of approximately ₹800 crore. The successful bidder for Jet Airways, JKC, is facing legal challenges from the airline's workers and employees, all of whom are seeking to recover their pending dues. Both the workmen and lenders took their grievances to the Supreme Court, pursuing the recovery of amount from the consortium.

Adding to the legal web, a Malta-based aviation company, Ave Aviation, sought NCLAT’s permission to purchase aircraft from Jet Airways. However, the NCLT Mumbai bench dismissed their plea in July, with Ave Aviation accusing lenders of obstructing the aircraft sale. At the heart of the matter lies the extension plea filed by the successful bidder, JKC, which has requested a 90-day extension from the NCLAT to pay pending dues amounting to ₹350 crore.