Jet Airways ownership transfer to JKC: Supreme Court reserves verdict on plea against NCLAT order

Supreme Court reserves judgment on SBI plea challenging NCLAT decision approving Jet Airways resolution plan.

The Supreme Court on Wednesday (October 16, 2024) reserved its judgment on a plea of State Bank of India (SBI) and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC).

A Bench comprising Chief Justice of India D.Y. Chandrachud and Justices JB Pardiwala and Manoj Misra heard submissions of Additional Solicitor General (ASG) N Venkatraman, appearing for the appellant banks and others, and senior advocate Mukul Rohatgi, representing the consortium, before reserving the judgement.

The NCLAT on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to the JKC. The appellate tribunal further directed the Jet Airways monitoring committee to complete the transfer of ownership within 90 days.

Besides, the insolvency the NCLAT had also directed the lenders of Jet Airways to adjust the ₹150 crore paid by the consortium as performance bank guarantee (PBG).

The Supreme Court was hearing an appeal of State Bank of India, Punjab National Bank and JC Flowers Asset Reconstruction Private Limited challenging the March 12 verdict of the NCLAT.

The ASG submitted that the consortium, the successful resolution applicant (SRA), had defaulted on payments prescribed under the resolution plan.

The law officer said that the consortium was four years behind on its payment schedule at the moment.