Jalan Kalrock Consortium (JKC), the entity tasked with reviving the grounded airline Jet Airways, has contested the National Company Law Appellate Tribunal’s (NCLAT) decision allowing the sale of the airline’s aircraft.
Filed in February 2024, the appeal is scheduled for a hearing on March 7. The aircraft, valued at Rs 400 crore, are set to be sold to Malta-based company Ace Aviation, which has already deposited Rs 50 crore.
Meanwhile, Ace Aviation has petitioned NCLAT to expedite the sale, citing the aircraft’s six-year grounding. The company stated that significant investments and restoration efforts are needed to make the aircraft airworthy, estimating a restoration timeframe of 8-10 months.
In December 2023, NCLAT dismissed JKC’s appeal, noting that the aircraft sale wouldn’t affect stakeholders’ rights as proceeds would be deposited in an escrow account and distributed according to the resolution plan. The sale was halted in November 2022 due to a deadlock in the monitoring committee, involving financial creditors, JKC, and the resolution professional. While creditors agreed to the sale, the consortium and former employees opposed it, citing outstanding gratuity and provident fund dues.
Former employees argued they couldn’t sell the aircraft due to their claim over them. Ace Aviation contested this deadlock in NCLT, which instructed the committee to resume the process and consider Ace Aviation as a bidder. In December 2023, NCLAT declined to intervene in NCLT’s decision.
