NCLT issues order approving Jet Airways resolution plan

NCLT issues written order approving resolution plan for Jet Airways

A separate order containing such directions has not been made available yet, it added

Jet Airways which started off as an air tax operator in 1993 and became a scheduled carrier in 1995. Credit: Reuters File Photo

The National Company Law Tribunal (NCLT) on Friday published the written order approving Jalan Kalrock Consortium's resolution plan for grounded Jet Airways, and the approval is subject to certain directions.

A separate order regarding the directions would be issued later by the tribunal.

On June 22, the tribunal, through an oral order, cleared the consortium's plan for the bankrupt-Jet Airways under the insolvency law.

In a filing to stock exchanges on Friday, Jet Airways' Resolution Professional Ashish Chhawchharia said the tribunal has published the "written order (dated June 22, 2021)" approving the resolution plan.

The matter was taken up through video conferencing by the tribunal on June 22.

"Counsel for the Applicant, Successful Resolution Applicant and CoC (Committee of Creditors) are present. Mr Ashish Mehta, Counsel for DGCA and MoCA is also present. Order pronounced. IA No. 2081 of 2020 is allowed subject to certain directions, vide separate order," NCLT said in the order.

Also read: Hope to see Jet Airways flying again by year-end, says airline's resolution professional

The applicant was State Bank of India, while the successful resolution application is Jalan Kalrock Consortium. DGCA is the Directorate General of Civil Aviation (DGCA) and MoCA is the Ministry of Civil Aviation.

"All stakeholders are requested to note that the written order mentions that IA No. 2081 of 2020 (i.e. the interlocutory application relating to the approval of the resolution plan) is allowed subject to certain directions which will be issued vide a separate order," the filing said.

A separate order containing such directions has not been made available yet, it added.

On June 22, the tribunal, while approving the resolution plan, also made it clear that it will not give any direction on the issue of airport slots for the airline, citing that the matter will be handled by the government or the appropriate authority concerned.

Financial distress forced Jet Airways, which flew for more than two decades, to suspend operations on April 17, 2019, and a consortium of lenders, led by the State Bank of India (SBI), filed an insolvency petition in June 2019, to recover outstanding dues worth over Rs 8,000 crore.

On Friday, shares of Jet Airways rose nearly 5 per cent to close at Rs 115.05 apiece on the BSE.

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