Lenders of Jet Airways have informed the Supreme Court that the Jalan-Kalrock Consortium (JKC) has not released the complete first tranche of a ₹350-crore deposit, which is a crucial condition for transferring ownership of the bankrupt airline. Led by the State Bank of India, the lenders also stated that the consortium has failed to meet any of the necessary conditions for the ownership transfer, prompting them to call for the cancellation of the bankruptcy resolution plan, which could potentially lead to Jet Airways being liquidated.
Jet Airways, founded by Naresh Goyal, went bankrupt in April 2019 after it suspended all flight operations due to financial difficulties. The Jalan-Kalrock Consortium consists of Murari Lal Jalan, a UAE-based non-resident Indian, and Florian Fritsch, who holds shares in Jet Airways through his Cayman Islands-based investment holding company, Kalrock Capital Partners Ltd. The consortium’s resolution plan for Jet Airways was approved by the National Companies Law Tribunal on June 22, 2021.
During the Supreme Court hearing, Jet Airways’s lenders argued that JKC breached a previous directive requiring the consortium to deposit ₹150 crore as part of the first tranche of the ₹350 crore. The lenders also reported that they have received only ₹200 crore out of the ₹4,783 crore promised to them as per the resolution plan, which is scheduled to be paid over five years. They highlighted that they are incurring monthly losses of ₹22 crore while maintaining the airline and its assets, and that Jet Airways owes approximately ₹7,500 crore to its lenders.
“This is a case of gross abuse of the Insolvency and Bankruptcy Code process. This is a definite moment—enough is enough. The court must make it clear that the IBC is not for abuse but a genuine facilitator for takeovers. Operators like this cannot come and play with the courts,” stated additional solicitor general N. Venkataraman, representing Jet Airways’s lenders.
The lenders reiterated that JKC has not met various preconditions required to take over Jet Airways, including obtaining an air operator certificate (AOC), approval from the Directorate General of Civil Aviation, slot allotment, bilateral rights, and international traffic rights. They also mentioned that JKC has failed to pay approximately ₹272 crore in dues for provident fund and gratuity to workers.
In response, JKC argued that the lenders were delaying its takeover of the airline, asserting that it had injected ₹350 crore in equity into Jet Airways and fulfilled its financial commitments as per the court-approved resolution plan.
The Supreme Court will continue hearing the case on October 1. The bench, led by Chief Justice D.Y. Chandrachud, was reviewing the lenders’ appeal against the National Company Law Appellate Tribunal’s (NCLAT) March ruling, which upheld the transfer of Jet Airways’s ownership to JKC by approving its resolution plan.
Previously, the NCLAT had affirmed a January 2023 order allowing the ownership transfer and directed the lenders to complete the handover process within 90 days. This includes transferring Jet Airways shares to JKC and obtaining an air operator’s certificate. The NCLAT also required the lenders to create security on three Dubai-based properties within 30 days, allowing them to adjust the ₹150 crore performance bank guarantee, with JKC required to pay the first tranche of ₹350 crore as a condition for ownership.
The lenders appealed the NCLAT’s ruling in the Supreme Court, arguing that the January order mandated a cash deposit of ₹150 crore and set aside the earlier NCLAT ruling that permitted JKC to submit a bank guarantee to fulfill its obligations. The lenders have also expressed concerns about the source of the ₹200 crore payment, stating that JKC is not cooperating with an investigation into the source, as directed by the NCLT, following fraud and money laundering investigations involving consortium member Fritsch in Europe.
