Must consider ‘conduct’ of monitoring committee: Jalan Kalrock tells NCLT


MUMBAI : The Jalan Kalrock Consortium, the successful resolution applicant of Jet Airways (India) Ltd, has urged National Company Law Tribunal (NCLT) to examine the monitoring committee’s role in implementing the grounded airline’s resolution plan.

Jet’s lenders and the consortium have been at loggerheads over the implementation of the resolution plan of the airline. “Performance guarantee was accepted by the committee without protest or caveat or any response, and no objections were raised by the committee until now,” Krishnendu Dutta, the counself appearing the the consortium, argued at the hearing on Thursday.

“The consortium has paid 47.5 crore for performance guarantee on 27 May, and then 102.5 crore as the remaining amount,” he added.

“If the conditions precedent were not completed why did the monitoring committee not say anything. When it came to accepting performance guarantees, it did so quietly. These issues have cropped up right at the time of implementing the resolution plan. Please consider the conduct of the monitoring committee” he told the NCLT bench led by Justice Pradeep Narhari Deshmukh and comprising Justice Shyam Babu Gautam.

Dutta argued that when the second tranche of the guarantees were paid, the monitoring committee did not inform the consortium about any of the conditions being incomplete, and there is no document in that regard. However, subsequently, the committee went on to invoke the guarantees on the ground that they were not renewed according to the due process.

In response to a query from the NCLT bench on whether the business plan was a part of the revival plan that was submitted to the ministry of corporate affairs (MCA) and Directorate General of Civil Aviation Dutta informed the bench that if the business plan was not included, it would have not got the necessary approvals from the MCA or the DGCA.

He also said that the consortium met all conditions precedent required for the implementation of the resolution plan approved by the NCLT.

Moreover, the senior counsel argued that the consortium has received an air operator’s certificate which will expire on 19 May 2023 from the DGCA.

The Mumbai bench of the NCLT will hear the arguments of Jet’s lenders today.

Meanwhile, the NCLT on Thursday was informed that a European cargo airline seeking expeditious acquisition of three Jet Airways aircraft.

The application is by a Malta-based Ace Aviation VIII Limited, which emerged as a successful bidder in the auction of three Boeing 777-300ER aircraft.

The firm is part of a Belgium-based cargo airline and the application will be taken up by the NCLT next week.

Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.



Source link