Supreme Court to hear Jet Airways lenders' plea against NCLAT order on Friday
NEW DELHI : The Supreme Court on Monday deferred hearing on a plea by Jet Airways' lenders, challenging the decision of the National Company Law Appellate Tribunal (NCLAT) to approve the resolution plan proposed by the Jalan-Kalrock consortium for the bankrupt airline. The court will now hear the case on Friday. During Monday's proceedings, lenders, led by the State Bank of India (SBI), termed the NCLAT's judgment as "shocking", citing its deviation from a previous Supreme Court ruling on the encashment of a ₹150 crore bank guarantee.
Initially, the bench led by chief justice D.Y. Chandrachud intended to issue a notice in response to the plea. However, upon the request of the lenders' counsel, the court deferred the hearing till Friday without issuing any notice.
The lenders referenced a previous judgment on 18 January by a three-judge bench, led by the chief justice, which had set aside the NCLAT's order from 28 August, 2023, allowing JKC to submit the ₹150 crore performance bank guarantee to fulfill the total obligation. However, in March, the NCLAT allowed JKC to adjust the security against a performance bank guarantee of ₹150 crore, from which JKC will be required to complete its first tranche of ₹350 crore as a condition precedent to taking ownership of Jet Airways. According to the appellate tribunal, JKC has already raised ₹200 crore for the first tranche.
The NCLAT also directed the airline's lenders to transfer the company to its successful bidder, the Jalan-Kalrock consortium (JKC), within 90 days. The appellate tribunal had asked the consortium to obtain an air operator’s certificate as part of the handover process. Additionally, NCLAT had instructed JKC to pay dues to the airline’s workmen, employees,
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