Tuesday, May 23, 2023

Jet Airways case: NCLAT to pass order on Jalan Kalrock Consortium's plea against SBI on May 30

In the Jet Airways case, appellate tribunal NCLAT on Monday said it will pass the order on May 30 on the winning bidder Jalan Kalrock Consortium's plea seeking to restrain lead lender SBI from encashing performance bank guarantees worth Rs 150 crore. Amid continuing differences between lenders of bankrupt-Jet Airways and the consortium, the appellate tribunal also asked both parties to cooperate with each other for implementation of the resolution plan for the airline.

Debt-ridden Jet Airways, which flew for 25 years, shuttered operations on April 18, 2019. The insolvency resolution proceedings against the carrier began in June 2019 and the National Company Law Tribunal (NCLT) approved the resolution plan submitted by the consortium in June 2021.

However, the plan is yet to be implemented, resulting in uncertainty over the future of the once-storied carrier.

On Monday, a two-member bench of the National Company Law Appellate Tribunal (NCLAT) concluded its hearing on the interim application moved by the consortium against SBI, the lead lender for Jet Airways, regarding encashment of the guarantees.

The appellate tribunal said it will pass the order on the consortium's petition on May 30 and said "both the parties will have to take steps ahead for implementation of the resolution plan".

Senior Advocate Ravi Shankar Prasad representing the consortium said it will deposit Rs 50 crore in an escrow account and requested NCLAT to direct SBI not to encash the performance bank guarantees submitted by it.

22/05/2023 PTI/Economic Times

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