<p>Regarding Jet Airways’s future, the National Company Law Appellate Tribunal (NCLAT) has affirmed a critical ruling. In a decision on Tuesday, the NCLAT ordered Jet Airways’ monitoring committee to give the Jalan Kalrock Consortium (JKC) control of the airline within ninety days.</p>
<p><img decoding=”async” class=”alignnone wp-image-504085″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-the-nclat-upholds-the-decision-to-provide-the-jalan-kalrock-consortium-jet-airways.jpg” alt=”theindiaprint.com the nclat upholds the decision to provide the jalan kalrock consortium jet airways” width=”1043″ height=”782″ title=”The NCLAT upholds the decision to provide the Jalan Kalrock Consortium Jet Airways 3″></p>
<p>The panel also ordered JKC, a partnership consisting of Florian Fritsch of Kalrock Capital and Murari Lal Jalan, to get an air operator’s certificate in the same amount of time. Notably, the NCLAT also approved the adjustment of the Rs 150 crore Performance Bank Guarantee (PBG) toward the Rs 350 crore first installment payment.</p>
<p>“The PBG of Rs 150 crore held with the monitoring committee will be adjusted in the payment of the first installment of Rs 350 crore as payment of Rs 200 crore has already been made by the SRA,” the appeal panel said in its explanation of the order.</p>
<p>By September of last year, the Jalan Kalrock Consortium had already invested Rs 200 crore in two installments. Lenders, however, have expressed alarm about JKC’s purported failure to abide by the conditions of the resolution plan, which included paying airport fees and the first installment.</p>
<p>Due to cash flow problems, Jet Airways, a once-well-known private airline in India, stopped operations on April 17, 2019. Lenders challenged the ruling to the National Company Law Tribunal (NCLAT) in 2023 after the consortium completed all condition predecessors, as acknowledged by the NCLT.</p>
<p>The appeal panel highlighted the resolution plan’s requirement that the successful resolution applicant provide performance security and said that lenders had received a PBG valued at Rs 150 crore. The tribunal also cited the property’s security value, which is Rs 246 crore, located in Mumbai’s Bandra Kurla Complex.</p>
<p>The NCLAT called for cooperation after expressing displeasure with lenders’ support of corporate debtor liquidation as opposed to settlement plan execution. “We trust and hope that lenders will now take proactive and cooperative steps to ensure that various Resolution Plan milestones are met and Corporate Debtor is revitalized so that many people’s hopes—including those of laborers and employees—are not dashed,” the tribunal said.</p>
The NCLAT upholds the decision to provide the Jalan Kalrock Consortium Jet Airways
