Lenders creating obstacles in revival of Jet Airways: Jalan Kalrock consortium
The Jalan Kalrock Consortium (JKC) told the National Company Law Appellate Tribunal (NCLAT) that they are ready to revive Jet Airways, but the lenders are creating obstacles by filing cases in multiple forums.
JKC said they have the Air Operator’s Certificate (AOC) for 2022-23, but they cannot start operations because the lenders have raised objections to their ownership. They also said that if they do not start operations soon, the slots allocated to them will be reassigned to others.
The lenders have said that JKC has not fulfilled its commitment to inject funds into the airline, and that the company will have to go through liquidation if they want to recover their dues. They have also said that the AOC’s validity will soon expire, and that it is doubtful whether JKC can start operations.
State Bank of India, one of the lenders, has filed an appeal with the NCLAT against the National Company Law Tribunal (NCLT) order endorsing the Jet revival plan. SBI claims that JKC has not infused any funds into the airline and argues that the revival plan is not viable.
Additional solicitor general N Venkatraman, appearing for SBI, submitted that appellant may be given liberty to file Additional Affidavit to bring certain documents on record.
Three days’ time is allowed to file the additional affidavit. Reply to the additional affidavit may be filed before the date fixed.
Krishnendu Datta, Senior Counsel submits JKC’s request that appeal itself may be decided on the merits so that there should be finality with regard to different stages as prayed by the appellant.
The NCLAT will hear the matter again on 7 August.
Jet Airways lenders have urged the Supreme Court to commence the winding-up process for the grounded airline, stating that the resolution plan approved by the NCLT was unfeasible.
The NCLAT had given the consortium of Murari Lal Jalan and Kalrock Capital (SRA) three more months to infuse capital in the airline. That period is over now.
Also See: Doubts lenders of Jet Airways have about Kalrock consortium’s revival plans
