Jet Airways employee unions’ plea to review the resolution plan submitted by Kalrock-Jalan consortium was rejected by the Mumbai Bench of NCLT on Monday. As many as five employee unions had appealed to the insolvency courts to see the resolution plan. “The respondent ( resolution professional managing Jet Airways) is duty-bound to maintain and ensure confidentiality of the resolution plan as provided under the Insolvency and Bankruptcy Board of India,” the court said in its written order, accessed by BusinessLine.
The airline was temporarily grounded in April 2019. Later that year, it was dragged to the NCLT by its lenders over unpaid dues. The CoC and the Resolution Professional held at least four rounds of inviting interest for the debt-strapped airline.
In the last round held in mid-2020, the Murari Lal Jalan and Kalrock Capital consortium submitted a firm bid, along with a revival plan for Jet Airways. The plan was submitted to the NCLT.
As many as five employee unions namely, National Aviators Guild (NAG); Engineers Union of Jet Airways (JAMEWA), Bhartiya Kamgar Sena (BKS), Jet Airways Cabin Crew Association, and All India Jet Airways Officers and Staff Association submitted a plea to the NCLT stating that they were unaware if the resolution plan protects their interests. The two-judge Bench in their order said the Covid-19 pandemic has led to a lot of stress on the aviation industry.
“The delay in the approval of the plan would result in mounting CIRP costs and may ultimately prove to be detrimental to the interest of all stakeholders, including the applicants. The applications, therefore, deserve to be dismissed without cost.”
The court will now hear the application for the approval of resolution plan on February 23.