NCLT allows transfer of ownership of Jet Airways to Jalan-Kalrock consortium: Report

The National Company Law Tribunal (NCLT)’s Mumbai bench has allowed the transfer of Jet Airway's ownership to the Jalan-Kalrock consortium (JKC), said a report on Friday. 

NCLT gave the consortium six months from effective date to pay dues to various creditors and has set November 16, 2022 as an effective date, reported CNBC TV-18. 

The consortium has to make cash payment worth Rs 185 crore to lenders within 180 days from November 16.

Lenders' counsel's request to stay order for two weeks has been declined by NCLT, said the report.

Pointing out that the Rs 150 crore deposited by JKC was in the form of bank guarantees, the lenders have sought an advance payment of Rs 185 crore before they could initiate the process of ownership transfer, reported Business Today in November 2022.

The lenders have also questioned the conditions precedent met by the consortium concerning slot allotment and international traffic rights. What may have further queered the pitch for bankers is the National Company Law Appellate Tribunal (NCLAT) order of October 21 directing Jet Airways to pay former employees Rs 250 crore towards the provident fund and gratuity dues. With the lenders already paring their admitted claims of Rs 7,807.7 crore to Rs 380 crore, the order may have added to their unease.