Jet Airways lenders move Supreme Court against NCLAT order upholding Jalan-Kalrock Consortium resolution plan

Jet Airways lenders, led by the State Bank of India (SBI), have moved the Supreme Court challenging the National Company Law Appellate Tribunal (NCLAT) order upholding the resolution plan proposed by the Jalan-Kalrock Consortium (JKC) for the bankrupt airline..A Bench of Chief Justice of India DY Chandrachud and Justice JB Pardiwala issued notice on the plea and listed the matter for hearing on Friday, April 26 on the request of Senior Advocate CS Vaidyanathan, appearing for the lenders..The National Company Law Tribunal (NCLT), Mumbai Bench on January 13 had allowed the Consortium of Murari Lal Jalan and Florian Fritsch, the successful resolution plan applicant, to take over Jet Airways India.The NCLT had allowed JKC to infuse funds into Jet Airways, take over its control and management, and execute all necessary documents to implement the approved resolution plan.The Tribunal granted an additional six months to the Consortium to make payment to lenders including the creditors and employees.It opined that the same was in the interest of justice and to achieve the primary objective of maximisation of assets and resolution of Jet Airways. .This was opposed by the lenders, who sought a stay on the order for two weeks. However, the Tribunal refused to grant the stay.Subsequently, the lenders approached the NCLAT, which upheld the order of NCLT, Mumbai. Aggrieved, they have now moved the apex court. .Jet Airways owed over ₹8,000 crore to the lenders. The airline had a large debt by way of accumulated losses to the tune of ₹13,000 crore, vendor dues of over ₹10,000 crore and salary dues of over ₹3,000 crore.In 2019, the NCLT Mumbai initiated the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code on an application by a consortium of lenders led by the State Bank of India. Ashish Chhawchharia was appointed as the resolution professional to monitor the process. The Jalan-Kalrock Consortium successfully bid for the airline company.The Consortium includes Jalan, who held shares in his personal capacity, and Fritsch, who held shares through his investment holding company, Kalrock Capital Partners.JKC deposited bank guarantees worth ₹150 crore in compliance with the approved resolution plan, which had been made effective from May 20, 2022. The Consortium will make cash payments of ₹185 crore to the financial creditors. It will also be infusing ₹1,375 crore for payment to other stakeholders and ₹900 crore for capital expenditure.