Jet Airways: NCLAT allows Dutch Administrator to attend CoC meetings, work in cooperation with RP

The National Company Law Appellate Tribunal (NCLAT) has allowed the Dutch Bankruptcy Administrator to attend the meeting of Committee of Creditors (CoC) in the ongoing Jet Airways Insolvency proceedings..The Dutch Administrator is equivalent to the Resolution Professional in India, and as per our law also he has the right to attend CoC meetings, the Appellate Tribunal said..It was also clarified that the Dutch Administrator would work in cooperation with the Resolution Professional and give its suggestions..The order was passed by a three-member NCLAT bench headed by Chairperson Justice SJ Mukhopadhaya in an appeal by the Dutch Administrator against an order passed by the National Company Law Tribunal (NCLT) Mumbai..The NCLT order had rejected the Dutch Administrator’s plea to recognize offshore bankruptcy proceedings against Jet Airways..Jet Airways is facing Insolvency proceedings in the Netherlands as well, where it was declared bankrupt in response to a complaint filed by two European creditors..Subsequently, a Bankruptcy Administrator or “trustee in charge” was appointed by the Dutch court for certain offshore properties of Jet Airways..After admitting the appeal, the NCLAT had directed the Jet Airways Resolution Professional to work with the Dutch Bankruptcy Administrator in the ongoing Jet Airways Insolvency matter and then formulate the “terms of agreement” with him..In the previous hearing, the counsel for Dutch Administrator and Resolution Professional informed the Appellate Tribunal that they had agreed to all the terms of a ‘cooperation agreement’ between them..Today, the counsel for Dutch Administrator stated that there was a disagreement with respect to its right to attend CoC meetings..It was stated that while the Dutch Administrator sought the right to attend CoC meetings, clause 6.1.2 of the terms of agreement i.e. ‘Cross Border Insolvency Protocol’ filed by the Resolution Professional had denied the same. The clause only provided for the supply of minutes of meetings to them, it was informed..Upholding the right of the Dutch Administrator to attend CoC meetings, the Appellate Tribunal said,.“In the present case, we make it clear that CoC has no role to play as the agreement was .. between the Resolution Professional and the Administrator on the basis of an Appellate Tribunal’s direction.. In spite of the same, the CoC interfered in the matter..”.The Appellate Tribunal thus directed that the Resolution Professional’s version of the clause with respect to the right of the Dutch Administrator to attend CoC meetings be replaced with the Dutch Administrator’s version..The Appellate Tribunal also stated,.“.. we expect the Dutch Administrator to work in cooperation with Resolution Professional and if any suggestion is required, it would be suggested to the Resolution Professional.”.With this change, the Cross Border Insolvency Protocol for Jet Airways was made final..The Appellate Tribunal further clarified that the direction of the Appellate Tribunal shall be mandatorily complied with, subject to the IBC..With these observations, the appeal by Dutch Administrator was disposed of..The Dutch Administrator was represented by Advocate Sumant Batra. The Resolution Professional was represented by Senior Advocate Abhinav Vashisht..Read the Judgement: