The bid by the consortium of Kalrock Capital and Murari Lal Jalan was approved by the Committee of Creditors in October last year.
The Mumbai Bench of the National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan of Kalrock Capital and entrepreneur Murari Lal Jalan for the revival of Jet Airways.
The bankruptcy court has granted 90 days to the consortium to apply for airport slots.
Though the government in its affidavit had earlier maintained that Jet Airways can’t claim a right on slots held by it earlier, the court has urged that the issue be addressed by the Ministry of Civil Aviation and the Directorate General of Civil Aviation.
The bid by the consortium of Kalrock Capital and Murari Lal Jalan was approved by the Committee of Creditors in October last year.
As per the resolution plan, the successful bidder has proposed a total cash flow of ₹1,375 crore for the revival of the company. The revival plan envisages starting operation with 30 aircraft within six months from the approval of the plan by NCLT.
In October 2020, the airline’s Committee of Creditors (CoC) approved the resolution plan submitted by the consortium of the UK’s Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan.
Jet Airways has been undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC) for two years, and its affairs are being managed by resolution professional Ashish Chhawchharia.
After the CoC gave its approval to the resolution plan, Chhawchharia had approached NCLT stating that the “slots are a vital part of the plan, and it is important that DGCA and MoCA submit their stance on the same”.
However, in a joint affidavit to the tribunal, DGCA and MoCA had submitted that Jet Airways does not qualify for grant of slots on the basis of historic precedence and the allocation will be based on ‘Slot Allocation Guidelines’.
“Jet Airways does not qualify for grant of slots on the basis of historic precedence and the submission of the airline’s that it is in operation for the last 25 years is not a criteria for claiming historicity and it can’t substitute the requirements for claiming historic precedence.
“Thus, the claims are wrong and denied,” as per the affidavit that was filed earlier this year.
DGCA is the Directorate General of Civil Aviation and MoCA is the Ministry of Civil Aviation.
A brief timeline of the insolvency resolution process of Jet Airways
April 17, 2019 — Cash-starved Jet Airways suspends operations
June 20, 2019 — National Company Law Tribunal (NCLT) insolvency petition filed by SBI-led lenders’ consortium
March 13, 2020 — Jet Airways seek more time for resolution process from NCLT after failing to attract any bidders
March 18, 2020 — NCLT allows more time for resolution process
June 14, 2020 — NCLT allows Jet Airways to sell its premises in Bandra Kurla Complex (BKC), Mumbai to settle claims, clear overseas debt
October 17, 2020 — Committee of Creditors (CoC) approves Jalan Kalrock Consortium’s resolution plan. The consortium also asks for restoration of slots on the basis of historicity
February 25, 2021 — NCLT grants more time to aviation regulator DGCA to respond to airline’s request for slots
March 9, 2021 — DGCA and the civil aviation ministry refuses to give any assurances on slots in an affidavit submitted to NCLT
June 3, 2021 — Ministry tells NCLT that Jet Airways does not qualify for grant of slots on the basis of historic precedence
June 22, 2021 — National Company Law Tribunal (NCLT) approves Jalan Kalrock Consortium’s resolution plan; says slot allocations will be decided by the ministry or appropriate authority.
(With PTI inputs)
