“Jet Airways Ownership Transfer to Jalan Kalrock Consortium Upheld by NCLAT”
The National Company Law Appellate Tribunal (NCLAT) has upheld the transfer of ownership of Jet Airways to the Jalan Kalrock Consortium (JKC), reiterating its decision made in January last year. This development comes amidst an ongoing legal battle between JKC and the lenders of Jet Airways over the transfer of ownership.
The National Company Law Appellate Tribunal (NCLAT) has upheld the transfer of ownership of Jet Airways to the Jalan Kalrock Consortium (JKC), reiterating its decision made in January last year. This development comes amidst an ongoing legal battle between JKC and the lenders of Jet Airways over the transfer of ownership.
In its ruling, the appellate tribunal directed lenders to facilitate the transfer within 90 days and mandated JKC to obtain an air operator’s certificate within this timeframe. Additionally, the tribunal had previously granted an extension for JKC to pay ₹175 crore to the State Bank of India (SBI), given that 107 days had elapsed since NCLAT’s initial order permitting the transfer of ownership.
The legal dispute surrounding Jet Airways has seen various twists and turns, with the Supreme Court declining to intervene in certain matters while setting aside NCLAT’s decision allowing JKC to offset ₹150 crore from its bank guarantee. Instead, the apex court ordered JKC to deposit this amount into a designated account.
Jet Airways, once a major player in India’s aviation industry, faced financial turmoil and was grounded in 2019. Subsequently, SBI initiated insolvency proceedings against the airline, leading to its admission into the resolution process. In 2021, Jet Airways emerged as the successful resolution applicant, paving the way for its revival and resumption of operations.
The decision by NCLAT reaffirms Jalan Kalrock Consortium’s position as the rightful owner of Jet Airways and signals a potential turning point in the airline’s journey towards recovery and relaunching its services in the Indian aviation market.
Sources By Agencies
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