File picture of a Jet Airways aircraft standing on tarmac at the domestic airport terminal in Mumbai.
| Photo Credit: Reuters

The Supreme Court on Wednesday (October 16, 2024) reserved its judgment on a plea of State Bank of India (SBI) and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC).

A Bench comprising Chief Justice of India D.Y. Chandrachud and Justices JB Pardiwala and Manoj Misra heard submissions of Additional Solicitor General (ASG) N Venkatraman, appearing for the appellant banks and others, and senior advocate Mukul Rohatgi, representing the consortium, before reserving the judgement.

The NCLAT on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to the JKC. The appellate tribunal further directed the Jet Airways monitoring committee to complete the transfer of ownership within 90 days.

Besides, the insolvency the NCLAT had also directed the lenders of Jet Airways to adjust the ₹150 crore paid by the consortium as performance bank guarantee (PBG).

The Supreme Court was hearing an appeal of State Bank of India, Punjab National Bank and JC Flowers Asset Reconstruction Private Limited challenging the March 12 verdict of the NCLAT.

The ASG submitted that the consortium, the successful resolution applicant (SRA), had defaulted on payments prescribed under the resolution plan.

The law officer said that the consortium was four years behind on its payment schedule at the moment.

MR. Rohatgi, appearing for the consortium, represented by law firm Karanjawala and Company, opposed the submissions of the law officer and it was the creditors who delayed the resolution process.

Jet Airways, which has remained grounded since April 2019, had in September, 2023, had said the new proposed promoters — the Jalan-Kalrock consortium — had completed an additional infusion of ₹100 crore into the carrier.

With this infusion, it had said, JKC has fulfilled its total financial commitment of ₹350 crore equity as per the court-approved resolution plan.

The consortium has fulfilled all other commitments to take control of the airline, it had added.

The airline had also said it was looking to re-launch operations from 2024.

After grounding in 2019 owing to a severe liquidity crisis at that time, the full-service carrier underwent an insolvency resolution process. However, it was having a dispute with the lender.

In 2021, JKC emerged as the successful bidder of Jet Airways.