New Delhi, February 23: The National Company Law Tribunal has rejected applications of Jet Airways (India) Ltd.’s workers unions seeking a copy of the resolution plan submitted by a consortium led by Dubai-based entrepreneur Murari Lal Jalan and Kalrock Capital.
A bench comprising Janab Mohammed Ajmal and V Nallasenapathy, who heard the case through video conferencing, observed that a resolution plan can only be presented to the creditors’ committee or the adjudicating authority for its approval. Insolvency code doesn’t contemplate sharing of the plan with any other entity, the tribunal said while dismissing the plea, BloombergQuint reported.
This order comes after three unions — the National Aviators’ Guild, representing more than 1,000 pilots, Jet Aircraft Maintenance Engineers Welfare Association and the Jet Airways Cabin Crew Association, together representing 70% of the airline’s ground staff — moved the NCLT seeking a stay on any final order until their plea was decided by the tribunal.
Jet Airways was once India’s largest national carrier by market value. A consortium of 26 lenders led by State Bank of India had initiated insolvency proceedings against the airline after it defaulted on its loan obligations. The plea was admitted by the NCLT in June 2019 and Ashish Chawchharia was appointed as its resolution professional. A resolution plan submitted by the Jalan-Kalrock consortium was approved in October last year.