SC orders Jet’s new owners to deposit Rs 150 crore

NEW DELHI: Supreme Court on Thursday ordered the Jalan-Kalrock consortium, whose Rs 4,783 crore financial package for revival of bankrupt Jet Airways has been approved, to deposit Rs 150 crore by Jan 31 to keep the resolution plan afloat, despite the lenders in SBI-led banking consortium accusing the foreign entity of lacking in intent to implement the airline’s revival plan.
Under the agreed reworked payment schedule for the first tranche of Rs 350 crore, the National Company Law Appellate Tribunal (NCLAT) had allowed Jalan-Kalrock to deposit Rs 100 crore by Aug 31 and Rs 100 crore more by Sept 30 of 2023, and adjustment of performance bank guarantee of Rs 150 crore with the balance amount.
A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra, at the end of the two-day-long hearing, said adjustment of performance bank guarantee, which is a security against non-performance, could not have been permitted to be adjusted against payment of Rs 150 crore by the successful resolution applicant (SRA).
It directed Jalan-Kalrock to make good the payment of Rs 150 crore into the SBI escrow account and said bank guarantee of Rs 150 crore would be revived. It said since appeals against NCLT order of Jan 13 last year is pending adjudication before NCLAT, the latter would decide appeals expeditiously, preferably by end of March.
Importantly, what could be seen as a relief for the SRA, the bench refused to adjudicate the plea of Airjet Ground Services (AGSL) employees for saddling Jalan-Kalrock with their salary, PF and gratuity dues. It would now be decided by NCLAT along with appeals by lenders and others.

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