NCLT clears Jalan Kalrock Consortium’s resolution plan for Jet Airways

By LE Desk

Mumbai, June 22, 2021: The National Company Law Tribunal (NCLT) today approved the revival plan for grounded airline Jet Airways. It has approved the resolution plan for Jet Airways submitted by the Kalrock-Jalan consortium.

The Directorate General of Civil Aviation (DGCA) and Ministry of Civil Aviation (MCA) have been given 90 days starting today to allot slots to the airline, reported CNBC-TV18.

As per the NCLT order, the DGCA will take the final decision on the allotment of slots to the airline. A government official has told the news channel that the DGCA and MCA will study the detailed order before deciding on slots.

The airline’s slots had been allocated to other airlines after it was grounded. The decision marks the first step in what could be the return of India’s oldest and largest private airline.

In a recent affidavit submitted to the bankruptcy court, the MCA and DGCA said that Jet Airways may not be in a position to claim historical slots. The government and the civil aviation regulator also said that the allocation of slots would be done in accordance with existing guidelines.

Jet Airways, which suspended operations in April 2019, has been undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC) for two years.

In October 2020, the Committee of Creditors (CoC) of the grounded airline had approved the resolution plan submitted by a consortium of UK’s Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.

In June 2019, NCLT admitted the insolvency petition against Jet Airways filed by the lenders’ consortium led by the State Bank of India.