NCLAT green lights sale of Jet planes to Ace Aviation, JKC approaches SC

The National Company Law Appellate Tribunal (NCLAT) on Wednesday dismissed the plea of Jalan Kalrock Consortium (JKC), the successful bidder for Jet Airways, opposing the sale of three aircraft to Ace Aviation.

JKC has now moved the Supreme Court against the sale of aircraft to Ace Aviation.

Ace approached the National Company Law Appellate Tribunal (NCLAT) two weeks ago seeking to expedite the sale of three aircraft in Mumbai in the same case.

"We see no reason to entertain any application in the disposed of the Appeal. If so advised, the Applicants (JKC) may file appropriate application before the Adjudicating Authority for appropriate relief," the NCLAT said.

The company (Ace) won a favourable order from the appellate tribunal in December last year where the court had told the Monitoring Committee of grounded Jet Airways to close the sale of aircraft. The company has not been able to take possession of the assets since 2022.

The finalisation of the sale of the aircraft was put on hold following a deadlock between the lenders and JKC.

Ace Aviation, which has been fighting Jet Airways for the acquisition of three Boeing B777 aircraft, told Business Standard that it must acquire them in six months as the deadline for the conversion of these wide-bodied planes to freighter aircraft is fast approaching.

Challenge Group Chief Executive Officer Eshel Heffetz said they have deposited $5.6 million for five aircraft, of which $4.6 million is earmarked for three aircraft in Mumbai, and the token of $1 million is for the other two Boeing B777 aircraft in Delhi (in respect to which a formal bid is yet to be completed).