Jet Airways asked to pay ₹350 crore to creditors by 31 Aug

The Jalan Kalrock Consortium (JKC) has to pay ₹350 crore before 31 August as a condition precedent. The next hearing is on 18 August.

Additional Solicitor General N Venkatraman, representing the lenders submitted that CoC may not pursue the plea and oppose the transfer of the ownership if the amount is paid. The court has given two weeks’ time for the CoC to file an affidavit.

Krishnendu Dutta, senior lawyer for JKC, stated that they will do their best to pay the amount on the given date.

The plea was filed by State Bank of India against Jet Airways bidder JKC to recover pending dues.

In the previous hearing, Dutta argued for JKC that the CoC is preventing the consortium from commencing operations, even after obtaining all necessary permissions from regulatory authorities and the government. He urged the tribunal to facilitate the early commencement of operations for Jet Airways, warning that failure to do so could result in the allocation of valuable slots to other airlines.

The Directorate General of Civil Aviation (DGCA) extended air operator certificate of the airline until 3 September, even as it undergoes corporate insolvency resolution process (CIRP).

On 5 July, the CoC took the matter to the Supreme Court and stated that it might be more prudent to wind up the airline, given that not a single penny has been repaid to them, and no funds have been injected into the debt-laden airline. The lenders themselves have infused nearly ₹400 crore of public money into the airline, which includes settling airport dues.

The NCLAT in January allowed transfer of ownership of Jet Airways to winning bidder Jalan-Kalrock Consortium.

According to the January order by the Mumbai bench of the tribunal, the effective date of the resolution plan has been taken as 16 November. As a result, the consortium will get six months from the said date to make payments to lenders.

On 22 June 2021, the NCLT in its order had approved the resolution plan submitted by the Jalan-Kalrock consortium subject to necessary approvals. The consortium comprises UAE-based non-resident Ind-ian Murari Lal Jalan, who will hold shares in Jet Airways in his personal capacity, and Florian Fritsch who will hold shares via his investment holding company Kalrock Capital Partners Ltd, Cayman.

Jet Airways stopped flying in April 2019 after running into financial difficulties. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium.

Before the suspension of its operations in April 2019, Jet Airways flew to more than 65 domestic as well as international destinations ,with a fleet of 124 narrow and wide-body aircraft.