The National Company Appellate Tribunal (NCLAT) has reserved its decision on the plea made by Jalan Kalrock Consortium, who won the bid for Jet Airways, for a 90-day extension to pay ₹350 crore to the creditors of the grounded airline. The consortium has offered to pay ₹100 crore to the creditors led by State Bank of India by 31st August and the remaining ₹100 crore by 30th September, while requesting to adjust the ₹150 crore performance bank guarantee along with the ₹350 crore.
However, the lenders argued that the consortium is not only seeking an extension but attempting to modify the approved resolution plan. Meanwhile, the NCLAT has requested written submissions from both parties within the next three days.Jalan Kalrock Consortium argued that their request to lenders is to initiate proceedings as even after paying ₹350 crore, the company won’t transfer to them easily due to the need for various approvals, such as stock exchange and SEBI approvals, and the cancellation of previous shareholding still held by erstwhile promoters. The committee of creditors (CoC) further argued that Jalan Kalrock Consortium is finding it difficult to pay ₹350 crore considering their total claim of about ₹8000 crore, part of which is allocated for paying airline dues at the airport. The lenders highlighted that the total expense of maintaining the airline is ₹390 crore, incurring a monthly expense of ₹22 crore. Jalan Kalrock Consortium’s lawyers also informed that Jalan Kalrock Consortium must pay ₹224 crore to the workforce along with pension and gratuity payments.
The CoC previously stated that they might not pursue the case further if Jalan Kalrock Consortium pays the amount by 31st August. Lenders have injected approximately ₹400 crore of public money into the airline, which includes settling airport dues. Jet Airways stopped flying in April 2019 after running into financial difficulties. However, ownership transfer has been delayed due to ongoing differences between the lenders and the consortium. On 22nd June 2021, the NCLT approved the resolution plan for Jet Airways submitted by the Jalan Kalrock Consortium. The consortium comprises UAE-based non-resident Indian Murari Lal Jalan and Florian Fritsch, who jointly bid for the airline in October 2020.
