Aviation News

NCLAT upholds NCLT order for sale of three Jet Airways aircraft to Ace aviation, ET Infra

[ad_1]

The National Company Law Appellate Tribunal (NCLAT), Friday, dismissed Jet Airways’ bidder Jalan Kalrock Consortium’s (JKC) and All India Jet Airways’ Officers and Staff Association’s appeal to cancel the sale of three aircraft to Ace Aviation VIII Limited.

The appellate tribunal held that “it didn’t find any error in the order passed by the adjudicating authority (National Company Law Tribunal, Mumbai)”. It directed that proceeds from the aircraft be deposited in an escrow account and dealt with as per the approved resolution plan.

The appellate tribunal pointed out that the approved resolution plan takes care of the interest of all the stakeholders, and no reason exists to stay the sale of assets of the corporate debtor.

Jalan Kalrock Consortium (JKC) and All India Jet Airways’ Officers and Staff Association had approached the appellate tribunal after the National Company Law Tribunal, Mumbai, in October had directed the monitoring committee of the beleaguered airline to proceed with the sale of three aircraft for which a letter of intent had already been issued after a payment of Rs 50 crore by Ace Aviation.

The monitoring committee, which comprises seven members, three each from financial creditors and successful resolution applicants, and the resolution professional, had put the sale in abeyance.

The sale is expected to fetch an additional Rs 350 crore.

The All India Jet Airways’ Officers and Staff Association opposed the sale as they argued the right of lien over the aircraft, owing to unpaid dues by the airline.

The successful resolution applicant, JKC, and the airline’s lenders are battling legal disputes across various legal forums, including the NCLAT and the Supreme Court. The Supreme Court will be taking up the Jet petitions next month.

Jet Airways has been grounded since April 2019. JKC had submitted the entire amount of the first tranche of payment of Rs 350 crore in September. The lenders have contended that JKC has failed to comply with the conditions of the resolution plan and have been fighting for transfer of ownership to the consortium.

  • Published On Dec 22, 2023 at 09:55 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Get updates on your preferred social platform

Follow us for the latest news, insider access to events and more.

[ad_2]

Source link