 "Jet Airways")
The Kalrock Jalan consortium has got 65 days more to fulfill conditions required for implementation of Jet Airways revival plan.
The National Company Law Tribunal has granted the extra time to ensure revival of the grounded airline. The tribunal passed the order on a plea by the consortium for exclusion of a certain number of days from implementation timeline.
“We find that if the relief as sought is refused it will cause a hurdle in the revival of corporate debtor (Jet Airways) which cannot be in the spirit of the Code. If no exclusion is granted it will also amount to automatic withdrawal of the resolution plan and the corporate debtor shall be posted into liquidation which is neither the intention of the code nor of the plan approval order,” the tribunal said in its detailed order released on Thursday.
The NCLT, in June 2021, cleared the consortium's plan to revive Jet Airways that suspended operations in April 2019. According to its conditions, the consortium had 270 days to fulfill conditions that are required for plan implementation. The 270-day limit ended on March 22 forcing the consortium to move court. With this latest order the date has now been set at May 25.
Senior advocate Krishnendu Datta who appeared for the consortium argued that the tribunal has the power to exclude or extend time for completion of conditions. The June 2021 order also permitted the consortium to approach the tribunal for extension of timelines.
He also pointed out that only one condition needs to be fulfilled which is validation of Jet’s air operator certificate. He added that two months beginning March 22 would be sufficient to fulfill that condition.
Advocate Vikas Mehta on behalf of Jet Airways Maintenance Engineers Welfare Association opposed the plea and said the plan should be considered withdrawn after the 270-day time limit. The tribunal however rejected the association’s argument and granted additional time.
