NCLAT asks Jet RP to cooperate with Dutch court administrator

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New Delhi | Published: September 5, 2019 3:18:10 AM

Jet is facing insolvency proceedings in the Netherlands and was declared bankrupt in response to a complaint filed by two European creditors who had claims of around `280 crore.

Jet Airways, Jet Airways nclat, Jet Airways crisis, Hindujas, Hinduja group, Etihad Airways, grounded airline, Jet Airways crisisThe counsel for the administrator said the CoC has put certain conditions which could prevent the RP from acknowledging their claims

The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed the resolution professional (RP) of Jet Airways to cooperate with the Dutch court administrator, which is also conducting insolvency proceedings against the debt-ridden carrier.

The appellate court has asked the RP to submit within two weeks a draft agreement between him and the administrator on claims from Jet Airways. The next hearing in the case is scheduled for September 20.

During the proceedings, the Committee of Creditors (CoC) informed the NCLAT that it was ready to cooperate with the administrator.

However, the counsel for the administrator said the CoC has put certain conditions which could prevent the RP from acknowledging their claims.

“There are 14 conditions put forward by the CoC. Some of these conditions can affect the RP’s flexibility and tie down his hands. But we are hopeful that the CoC will cooperate,” advocate Sumant Batra said.

A three-member NCLAT Bench, headed by chairman Justice SJ Mukhopadhyay, observed that the CoC can only advise the RP on offshore claims. “In the present case, the CoC has no role to play and it can only advise or the RP can consult it. Any decision of the CoC will not be binding on the RP,” the Bench observed.

On August 21, the NCLAT had asked the CoC of Jet Airways whether it would cooperate with the administrator.

The administrator had challenged the order of the Mumbai Bench of the National Company Law Tribunal (NCLT), which had declared overseas bankruptcy proceedings null and void in the Jet Airways insolvency case.

On July 12, the NCLAT had stayed the orders of the NCLT and said it would clarify the law on the action to be taken when there are two insolvency petitions filed against the same company in two different countries.

The administrator has also agreed before the NCLAT not to sell the confiscated assets of the airline. One of the Jet Airways aircraft, parked in the Schiphol Airport in Amsterdam, has already been seized.

Jet is facing insolvency proceedings in the Netherlands and was declared bankrupt in response to a complaint filed by two European creditors who had claims of around `280 crore.

Following this, a trustee in charge was appointed by the Dutch court and it had approached its Indian counterpart for access to financials as well as assets of the airline. The grounded airline owes more than `8,500 crore to lenders. It also has a large debt by way of accumulated losses to the tune of `13,000 crore, vendor dues of over `10,000 crore and salary dues of over `3,000 crore.

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