NCLAT Affirms Jet Airways Ownership Transfer to Jalan Kalrock Consortium
The National Company Law Appellate Tribunal (NCLAT) confirmed the ownership transfer of Jet Airways to Jalan Kalrock Consortium (JKC) following its approval of the same transfer in January of last year.
Lenders were ordered by the appellate tribunal to complete the transfer within ninety days. By the end of this window, JKC was also requested to obtain an air operator’s certificate. Prior to now, it had extended the deadline for paying SBI ₹175 crore because 107 days had gone by since the NCLAT’s ruling permitting the ownership transfer.
NCLAT Affirms Jet Airways Ownership Transfer to Jalan Kalrock Consortium #NCLAT #JetAirways #JalanKalrock #PowerCorridors pic.twitter.com/vEkMUYorNw
— POWER CORRIDORS (@power_corridors) March 12, 2024
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Legal Battle Continues as Jet Airways Ownership Transfer Faces Challenges
This occurs while JKC and Jet Airways’ lenders continue their legal battle over the airline’s ownership transfer. In January, the NCLAT’s order allowing JKC to make adjustments of ₹150 crore from its bank guarantee was overturned by the Supreme Court, which declined to get involved in other matters. JKC was also mandated by the supreme court to deposit ₹150 crore into a specific account.
Ace Aviation, based in Malta, was previously granted permission by the NCLAT to purchase the aircraft. The business had earlier stated that it had paid up to Rs 50 crore in deposits for the agreement.
Due to financial difficulties, Jet Airways was forced to ground in 2019, and the company’s largest lender, State Bank of India (SBI), filed for bankruptcy before the NCLAT. Subsequently, Jet Airways entered the resolution process and became the successful resolution applicant in 2021, allowing the airline to resume operations.
