The Supreme Court, on March 7, rejected a petition from the Jalan Kalrock Consortium (JKC), the successful bidder tasked with revitalizing Jet Airways, challenging the National Company Law Appellate Tribunal (NCLAT) ruling allowing the sale of aircraft belonging to the defunct airline.
A bench led by Justice Abhay Sriniwas Oka observed no fault in the NCLAT’s decision, noting it would ultimately benefit JKC by injecting more funds into the revival process.
During the proceedings, JKC requested the court to defer the case until the NCLAT delivers a verdict on Jet Airways’ ownership issue, as the NCLAT has reserved judgment on the matter. However, the court indicated reluctance to entertain the plea. Three aircraft owned by the grounded airline are set to be sold to Ace Aviation, a Malta-based company.
In December 2023, the NCLAT dismissed JKC’s appeal, stating the aircraft’s sale would not affect stakeholders’ rights, with the proceeds being deposited into an escrow account and distributed according to the resolution plan. The sale of three aircraft worth Rs 400 crore was halted in November 2022 due to a deadlock in the monitoring committee, comprising financial creditors, JKC, and the resolution professional. While lenders agreed to the sale, the consortium and former employees opposed it, citing outstanding gratuity and provident fund dues.
The workmen argued against the aircraft sale, claiming a lien over them due to unpaid dues. Ace Aviation challenged this deadlock before the NCLT. In October 2023, the NCLT instructed the committee to resume the process and finalize the aircraft sale, considering Ace Aviation as an eligible bidder.
