The lenders to Jet Airways have told NCLT that the Jalan Kalrock Consortium (JKC) has completed only one out of five conditions set out under the approved debt resolution plan. The lenders, in their response to JKC’s appeal seeking control of Jet Airways, have said that the consortium has not complied with the requirements including approval of the business plan from the DGCA and MoCA, slot allotment approval, international traffic rights, and approval of the demerger of the ground handling business.
JKC, on the other hand, had said that it has met all the five conditions and therefore the airline should be handed over to them.
In its application, the consortium had said that the Air Operator Certificate (AOC) was issued on May 20, 2022. The business plan was submitted in July 2021 and December 2021 and receipt confirmation was received in May 2022, after which AOC was issued. Regarding the slots, it had said that Jet could not get its old slots. Regarding the international traffic rights, JKC had said it needed 20 aircraft.
In response to this, the lenders have stated that the “lenders in their meetings have repeatedly maintained the position that the conditions have not been fulfilled and any way forward on implementation of the resolution plan was linked to the approval and directions of the NCLT on compliance of the condistions and pursuant to the filing of the proposed undertaking by the Successful Resolution Applicant (SRA).”
The Jalan Kalrock Consortium had sought two reliefs; NCLT to pass orders that all five conditions precedent under the resolution plan stand completed, and secondly, NCLT to pass orders directing the Monitoring Committee Lenders (SBI, PNB and YES Bank) to allow SRA to infuse money in Jet Airways so that creditors can be paid, and plan can be implemented, in its application.
The lenders further added that “it is pertinent to note that the Applicant (JKC), till date, has not provided the aforesaid Proposed Undertaking to the monitoring committee, and in an attempt to skirt the fulfillment of the CPs strictly in accordance with the approved resolution plan, has filed the present application in a bid to mislead this Tribunal. Despite the above and multiple extensions, the applicant has not only remained unsuccessful in implementing its obligations under the approved resolution plan thus far including towards achievement of the conditions precedent but is also now seeking reliefs, inter alia, for gaining control and management of the corporate debtor, while avoiding its obligations under the resolution plan.”
One of the people close to the matter told businessline that the lenders have said that only the first condition has been met within the stipulated timeline, whereas the rest have either not been met at all or have been met beyond the set timeline.
The resolution application was approved on June 22, 2021, after which the SRA had been given 90 days, which was subsequently extended till May 20, 2022.
Meanwhile, one of the employees’ unions, Jet Airways Cabin Crew Association (JACCA), has filed an application to the NCLT, through its lawyer Rahul Kamerkar seeking liquidation of the assets.
In other development, sources told businessline that the NCLAT has dismissed Jalan Kalrock Consortium’s application seeking clarity of the October 21 order. On the said date, the NCLAT had said that the provident fund and gratuity amount of Jet Airways employees till June 2019. The amount had totaled to ₹250 crore. In its order on December 2, the NCLAT has clarified that said amount, regardless of it not being covered in the resolution plan, has to be borne by the successful resolution applicant as per the judgment.