Omkar Gokhale.The Mumbai Bench of the National Company Law Tribunal (NCLT) today admitted the Jet Airways insolvency case brought by State Bank of India (SBI) against the grounded airline..Citing the national importance of the issue, the NCLT has also asked the resolution professional to give fortnightly reports. Further, it has directed that the process be completes expeditiously within three months, instead of 180 days prescribed in the Insolvency and Bankruptcy Code (IBC)..In doing so, the Division Bench of VP Singh and Ravikumar Duraiswamy has rejected the pleas moved by two operational creditors, Shaman Wheels and Gaggar Enterprises. Instead, they will be part of the resolution process, during which process they can file their respective claims..The Bench also rejected an intervention application moved by Netherlands-based operational creditors, citing lack of cross-border jurisdiction. The NCLT stated that it is not empowered to deal with the plea. The Netherlands-based operational creditors, including logistics vendor World Flight Services, had on Wednesday told the NCLT that they want to place on record that proceedings were also progressing at the Dutch Court..The matter is posted to be taken up next on July 5. On June 18, a consortium of bankers led by SBI had applied for insolvency under section 7 of IBC. This provision enables financial creditors or lenders to initiate the insolvency resolution process against the corporate debtor. Cyril Amarchand Mangaldas appeared for SBI in the matter. SBI claimed that the lenders were forced to drag the airline to the NCLT as the consortium of banks had waited long for the resolution plan to materialise..Jet Airways owes over Rs 8, 000 crore to lenders, including the consortium of banks led by SBI. The airline also has a large debt by way of accumulated losses to the tune of Rs 13, 000 crores, vendor dues of over Rs 10, 000 crore and salary dues of over Rs 3, 000 crore pending..Bar & Bench is available on WhatsApp. For real-time updates on stories, Click here to subscribe to our WhatsApp.
Omkar Gokhale.The Mumbai Bench of the National Company Law Tribunal (NCLT) today admitted the Jet Airways insolvency case brought by State Bank of India (SBI) against the grounded airline..Citing the national importance of the issue, the NCLT has also asked the resolution professional to give fortnightly reports. Further, it has directed that the process be completes expeditiously within three months, instead of 180 days prescribed in the Insolvency and Bankruptcy Code (IBC)..In doing so, the Division Bench of VP Singh and Ravikumar Duraiswamy has rejected the pleas moved by two operational creditors, Shaman Wheels and Gaggar Enterprises. Instead, they will be part of the resolution process, during which process they can file their respective claims..The Bench also rejected an intervention application moved by Netherlands-based operational creditors, citing lack of cross-border jurisdiction. The NCLT stated that it is not empowered to deal with the plea. The Netherlands-based operational creditors, including logistics vendor World Flight Services, had on Wednesday told the NCLT that they want to place on record that proceedings were also progressing at the Dutch Court..The matter is posted to be taken up next on July 5. On June 18, a consortium of bankers led by SBI had applied for insolvency under section 7 of IBC. This provision enables financial creditors or lenders to initiate the insolvency resolution process against the corporate debtor. Cyril Amarchand Mangaldas appeared for SBI in the matter. SBI claimed that the lenders were forced to drag the airline to the NCLT as the consortium of banks had waited long for the resolution plan to materialise..Jet Airways owes over Rs 8, 000 crore to lenders, including the consortium of banks led by SBI. The airline also has a large debt by way of accumulated losses to the tune of Rs 13, 000 crores, vendor dues of over Rs 10, 000 crore and salary dues of over Rs 3, 000 crore pending..Bar & Bench is available on WhatsApp. For real-time updates on stories, Click here to subscribe to our WhatsApp.
