The NCLAT (National Company Law Appellate Tribunal) has postponed its hearing on the Jet Airways case until November 1. This follows the creditors’ request for additional time to prepare their response to the compliance affidavit submitted by the Jalan-Kalrock Consortium, the consortium that successfully bid for the defunct airline. The creditors’ legal representatives made this request during the NCLAT proceedings, and a three-member bench granted the extension.
The creditors have concerns about the source of the Rs 200 crore payment made by the Jalan-Kalrock Consortium. They have to submit a response to the compliance affidavit filed by the winning bidder. Last week, N Venkataraman, the Additional Solicitor General representing lenders such as SBI and other banks, expressed reservations to the NCLAT regarding the source of funds that were used to deposit money for the Jalan-Kalrock Consortium (JKC).
“The payment is not compliant with the resolution plan as it mandates that the money is to be paid through JKC,” ASG had submitted. He added that there are concerns about the possibility of money laundering and requested additional time to prepare a response to the compliance affidavit submitted by JKC.
JKC has said that only a part of the amount came in from another source, while the majority of it was paid by Murari Lal Jalan. It alleged that lenders were objecting to every move to avoid handing over Jet’s ownership. JKC was the winning bidder for Jet Airways which had stopped flying in April 2019 and later underwent an insolvency process. The consortium had to pay Rs 350 crore to the lenders by August 31. However, on August 28, the NCLAT extended the deadline to September 30 for the Jalan-Kalrock Consortium to make the Rs 350 crore payment to the creditors of the insolvent Jet Airways.
JKC’s plea for an extension of the timeline and the adjustment of Rs 150 crore from the performance bank guarantee (PBG) towards the Rs 350 crore payment was granted as well. The consortium provided an assurance to the appellate tribunal, committing to deliver Rs 100 crore by August 31, 2023, and an additional Rs 100 crore by September 30, 2023. On September 29, the JKC issued a statement stating that it had met its entire financial commitment of Rs 350 crore in equity, as outlined in the court-approved resolution plan.
(With PTI inputs)