Supreme Court to Decide Fate of Jet Airways Ownership Transfer

New Delhi : The Supreme Court is scheduled to announce its decision on Thursday regarding the lenders' petition challenging the transfer of ownership of Jet Airways to Jalan Kalrock Consortium (JKC). The Committee of Creditors (CoC), led by the State Bank of India, has raised concerns about the proposed revival plan not being in the best interest of the lenders and has questioned the NCLAT's order upholding the resolution plan. In January this year, the Supreme Court had ordered JKC, the successful bidder for Jet Airways, to deposit Rs 150 crore in an escrow account jointly held by SBI and JKC. The court had warned that there would be legal consequences if this was not done.

It had also directed the NCLAT to make a decision by March 2024 on the lenders' plea challenging the transfer of ownership to JKC. The consortium had promised to infuse Rs 350 crore equity as per the resolution plan approved by the court to take over Jet Airways. The NCLAT had agreed to adjust Rs 150 crore from the Performance Bank Guarantee (PBG) towards this amount. It had also accepted a commitment from JKC to pay Rs 100 crore by August 31, 2020, and another Rs 100 crore by September 30, 2023.

Jet Airways, once a prominent airline in India, was forced into insolvency under the IBC in June 2019 due to severe financial distress.