The National Company Law Appellate Tribunal (NCLAT) has deferred its decision on the plea by the Jalan Kalrock Consortium, the winning bidder for Jet Airways, seeking a 90-day extension to make a payment of ₹350 crore to the creditors of the grounded airline. The tribunal is set to announce its verdict on August 28.
During the hearing, the consortium, represented by senior lawyer Ravi Shankar Prasad, expressed its willingness to pay ₹100 crore to creditors led by the State Bank of India by August 31, with the remaining ₹100 crore to be paid by September 30. Prasad also argued for utilizing the ₹150 crore performance bank guarantee as part of the ₹350 crore payment.
In response, the tribunal requested the consortium to confirm whether the performance bank guarantee could serve as security for the deposit amount of ₹350 crore. Prasad cited the approved resolution plan that allows for the adjustment of the performance bank guarantee.
However, the Committee of Creditors (CoC) objected, contending that the consortium was not merely seeking an extension but trying to modify the already approved resolution plan. Additional Solicitor General N Venkatraman, representing the lenders, indicated that they might consider an extension of time but opposed invoking the bank guarantee.
The CoC argued that Jalan Kalrock Consortium was facing challenges in paying ₹350 crore due to their overall claim of around ₹8,000 crore, some of which is allocated to cover airline dues at airports. The lenders emphasized that maintaining the airline costs ₹390 crore, incurring a monthly expense of ₹22 crore.
Lawyer Krishnendu Dutta, also representing the consortium, argued that the request to lenders is to initiate proceedings, as even after paying ₹350 crore, ownership transfer would not be straightforward due to the need for various approvals, including stock exchange and SEBI approvals, and the cancellation of previous shareholding still held by the airline's erstwhile promoters.
Jalan Kalrock Consortium noted that the company of creditors is already in control of Bandra Kurla Complex (BKC) in Mumbai. As part of the approved resolution plan, the consortium had offered three properties in Dubai worth ₹450 crore to the lenders.
The consortium has also been reminded by lawyers representing the workforce to pay ₹224 crore to employees along with pension and gratuity payments.
The NCLAT has requested both parties to submit written arguments within the next three days.
Source: Link
Picture Source :
