Jalan Kalrock Coalition (JKC), the successful bidder for defunct airline Jet Airways, on Tuesday withdrew its application filed before the NCLAT. The petition sought to transfer Rs 200 crore paid by JKC to lenders to an escrow account. The petition was withdrawn after the National Company Law Appellate Tribunal (NCLAT) refused to grant any relief to JKC. Meanwhile, shares of private sector Jet Airways closed at Rs 44.95 with a marginal gain on Tuesday.
What did NCLAT say?
A bench headed by Appellate Tribunal Chairman Justice Ashok Bhushan said that the matter is already pending before the Supreme Court. After this the alliance of Murari Lal Jalan and Florian Fritsch withdrew their appeal. Let us inform that JKC had said in its petition that till the shares of Jet Airways are not released to it, Rs 200 crore deposited to the lenders should be transferred to an interest-bearing escrow account.
Services are closed since 2019
Jet Airways had shut down its operations in April 2019 after facing huge debt crisis. In the insolvency resolution process that followed, the JKC alliance had emerged as the winning bidder. However, the ownership transfer case is still pending due to ongoing differences between the airline’s lenders and the consortium.
Earlier this year on March 12, NCLAT had upheld the resolution plan of defunct airline Jet Airways and approved the transfer of its ownership to JKC. It was directed to pay Rs 350 crore to initiate the process of share transfer but JKC had paid only Rs 200 crore in cash.
