Jet Airways insolvency: SC asks JKC to deposit Rs 150 crore by 31 January
The Supreme Court on 18 January 2024 directed Jalan-Kalrock Consortium (JKC) to deposit Rs 150 crore by 31 January in an escrow account between State Bank of India and JKC as part of the resolution plan of Jet Airways.
The apex court set aside the order of the National Company Law Appellate Tribunal (NCLAT) of August 2023, and held that in case JKC does not furnish the bank guarantee, the consequences of law will follow.
The NCLAT will now have to decide the appeal by State Bank of India challenging the transfer of Jet Airways’ ownership to JKC by end of March 2024.
“The question of adjustment of Rs 150 crore (through bank guarantee), we will keep it with the NCLAT. You (JKC) have to (pay),” the apex court said.
Solicitor General Tushar Mehta, appearing for the lenders, told a bench of CJI D Y Chandrachud and Justices J B Pardiwala and Manoj Misra that the financial creditors (banks/lenders) are struggling to get an amount of Rs 350 crore towards the first tranche payment, even two years after approval of the resolution plan.
The total admitted claim of the financial creditors of Jet Airways is Rs 7,800 crore but the resolution plan by JKC offers Rs 4,783 crore, which is payable in tranches in five years.
“At every stage, they(lenders) are objecting. If you don’t want the bank guarantee, give it back,” Senior Advocate Mukul Rohatgi, appearing for JKC said on Thursday.
“This company (JKC) only engages in litigation. Every day we stand before the court. It is not just a question of Rs 150 crore. There are a host of conditions in the Resolution Plan that they cannot comply with. There are three more conditions they have not complied with,” said Additional Solicitor General (ASG) N Venkataraman, appearing for the lenders.
Jalan-Kalrock Consortium had to pay Rs 350 crore to lenders as a condition precedent to the transfer of ownership of Jet Airways. Jet had deposited Rs 200 crore and rest of the amount was supposed to be adjusted from Rs 150-crore bank guarantee. However, the SC has now said that JKC must deposit the full Rs 350 crore by 31 January.
Also See: Jet Airways lenders ask JKC to pay Rs 350 cr for transfer of ownership
