NCLAT adjourns Jet Airways hearing to Nov 1 as creditors seek more time

The insolvency appellate tribunal NCLAT on Thursday adjourned its hearing on Jet Airways matter to November 1, as the creditors sought more time to file a reply over the compliance affidavit filed by the Jalan-Kalrock Consortium -- the successful bidder of the grounded carrier.

Counsel appearing for the creditors sought more time to complete their pleadings during the proceedings of the National Company Law Appellate Tribunal (INCLAT), which was accepted by a three-member bench.

The creditors, which suspect the source of Rs 200 crore paid by the Jalan-Kalrock Consortium, have to file a reply over the compliance affidavit filed by the successful bidder.

Last week, Additional Solicitor General N Venkataraman, representing lenders including SBI and other banks, told NCLAT that there are apprehensions about the source of funds, which deposited the money for Jalan-Kalrock Consortium's (JKC).

"The payment is not compliant with the resolution plan as it mandates that the money is to be paid through JKC," ASG had submitted.

He had also alleged that there are apprehensions the money could have been laundered and sought some time to file a reply over the JKC's compliance affidavit.

However, the consortium had said only a part of the money came from another source, while the majority of the amount was paid by Murari Lal Jalan and had alleged that lenders were objecting to every move since they do not want to transfer Jet's ownership.

JKC, the winning bidder for the airline, which stopped flying in April 2019, and later underwent an insolvency resolution process, had to pay Rs 350 crore to the lenders by August 31.

Earlier on August 28, NCLAT had extended the time till September 30, for Jalan-Kalrock Consortium for payment of Rs 350 crore to the lenders of the bankrupt Jet Airways.

It had accepted the plea of the consortium to extend the timeline and also for adjustment of Rs 150 crore from the performance bank guarantee (PBG) towards payment of Rs 350 crore.

The consortium has submitted an undertaking before the appellate tribunal, in which it had committed to pay Rs 100 crore by August 31, 2023 and another Rs 100 crore by September 30, 2023.

The consortium on September 29, in a statement had said it had fulfilled its total financial commitment of Rs 350 crore equity as per the court-approved resolution plan.