The Supreme Court is set to hear a plea by the lenders of grounded airline Jet Airways on October 12, as they challenge the National Company Law Appellate Tribunal's (NCLAT) order, which granted the Jalan Kalrock Consortium (JKC), the successful bidder for Jet Airways, additional time to make payments to them. This development comes in the wake of an ongoing dispute over payments and the credibility of the funds used.
Senior advocate Harish Salve, representing the lenders, contended that JKC was employing tactics to delay its payments to them. He further raised concerns about JKC's foreign partner, Florian Fritsch, who faces accusations of money laundering and other charges.
In response, senior advocate Mukul Rohatgi, representing JKC, defended the consortium, asserting that JKC had been complying with court orders and recently made a payment of Rs. 350 crore.
The lenders had previously questioned the source of funds used by JKC to repay a portion of the Rs. 350 crore dues, suggesting that the payment might not have been in compliance with the resolution plan and could potentially involve money laundering.
JKC, led by UAE-based businessman Murari Lal Jalan and London-based Kalrock Capital, won the bid for Jet Airways and has been tasked with reviving the beleaguered airline.
The payment schedule approved by the NCLAT in August required JKC to make payments of Rs. 100 crore by August 31, an additional Rs. 100 crore by September 30, and the remaining Rs. 150 crore was to be adjusted against the performance bank guarantee. However, the lenders raised concerns about Rs. 13 crore of the Rs. 200 crore payment, suggesting it came from "other sources" not in alignment with the resolution plan.
Moreover, lenders have expressed apprehensions regarding Florian Fritsch, highlighting that his properties were subject to search in 2022 as part of a broader fraud and money-laundering investigation.
The Jet Airways case has been marked by various legal challenges and delays since the airline was grounded in April 2019 due to financial difficulties and a substantial debt of approximately Rs. 8,000 crore. The revival plan submitted by the Jalan-Kalrock consortium was approved by the airline's Committee of Creditors in October 2020, and this ongoing dispute centres on payment issues and adherence to the resolution plan. The Supreme Court's upcoming hearing on October 12 is expected to provide further clarity on the matter.
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