NCLAT upholds transfer of ownership of Jet Airways to Jalan Kalrock Consortium

The National Company Law Appellate Tribunal (NCLAT) upheld the transfer of ownership of Jet Airways to Jalan Kalrock Consortium (JKC) after it had already permitted.

The transfer of ownership to JKC in January last year. What NCLAT said on Jet Airways? The appellate tribunal directed lenders to effect the transfer in 90 days. It also asked JKC to obtain an air operator’s certificate by the end of this window. Earlier it had given more time to pay ₹175 crore to SBI as 107 days had passed since NCLAT’s order allowing transfer of ownership.

This comes as the legal tussle over the transfer of ownership of the airline continues between JKC and the lenders of Jet Airways. In January, the Supreme Court refused to interfere in other issues but set aside the order of the NCLAT permitting JKC to adjust ₹150 crore from its bank guarantee. The apex court also ordered JKC to deposit ₹150 crore in a designated account.

Jet Airways was grounded in 2019 amid financial troubles and its biggest lender State Bank of India (SBI) initiated insolvency proceedings against the company before NCLAT. Jet Airways subsequently admitted to the resolution process and in 2021 emerged as the successful resolution applicant to re-commence the operations of the airline.