NCLAT upholds Jet Airways' transfer to Jalan Kalrock Consortium, revival in sight

Jet Airways sees a glimmer of hope as the National Company Law Appellate Tribunal (NCLAT) directs the transfer of the bankrupt airline's ownership to the Jalan Kalrock Consortium (JKC) within 90 days, The Economic Times reported on Tuesday.

Upholding the resolution plan, the tribunal mandates JKC to obtain an air operator's certificate within the same period.

According to the appellate tribunal, the Performance Bank Guarantee of Rs 150 crore will be adjusted towards the first tranche payment of Rs 350 crore.

JKC, having already deposited Rs 200 crore in two tranches, is now required to complete the payment process as part of the ownership handover.

The resolution plan approval by NCLT in January 2023 set the stage for Jet Airways' potential revival under the Jalan-Kalrock consortium, marking a significant milestone for the grounded airline.

The consortium, led by Murari Lal Jalan and Florian Fritsch, aims to bring Jet Airways back to the skies after its grounding in 2019.

Jet Airways' lenders are urged by the NCLAT to create security on three Dubai-situated immovable properties within 30 days.

The security will be adjusted against the Performance Bank Guarantee of Rs 150 crore, aiding JKC in completing its first tranche payment.

Meanwhile, a report by Mint said that lenders plan to challenge the NCLAT order in the Supreme Court, citing concerns about JKC's compliance with various conditions necessary for Jet Airways' takeover.

According to lenders, JKC's alleged non-compliance with conditions such as obtaining an air operator certificate and clearing dues raises significant concerns about the viability of Jet Airways' revival.

The source of the funds deposited by JKC, especially in light of investigations into Florian Fritsch for fraud and money laundering offenses, further complicates the situation.