NCLT Mumbai allows Jalan-Kalrock Consortium to take over Jet Airways

The National Company Law Tribunal (NCLT), Mumbai Bench on January 13 allowed the consortium of Murari Lal Jalan and Florian Fritsch, the successful resolution plan applicant, to take over Jet Airways India. [State Bank of India v. Jet Airways India Ltd].A bench including judicial member Justice PN Deshmukh and technical member Shyam Babu Gautam allowed the Jalan-Kalrock Consortium (JKC) to infuse funds into Jet Airways, take over its control and management, and execute all necessary documents to implement the approved resolution plan..The Tribunal granted an additional six months to the consortium to make payment to lenders including the creditors and employees.The bench opined that the same was in the interest of justice and to achieve the primary objective of maximization of assets and resolution of Jet Airways. This was opposed by the consortium of bankers, who sought a stay on the order for two weeks. However, the Tribunal refused to grant the stay..Jet Airways owed over ₹8,000 crore to lenders, including the consortium of banks. The airline had a large debt by way of accumulated losses to the tune of ₹13,000 crore, vendor dues of over ₹10,000 crore and salary dues of over ₹3,000 crore.In 2019, the NCLT Mumbai initiated the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code on an application by a consortium of lenders led by the State Bank of India. Ashish Chhawchharia was appointed as the resolution professional to monitor the process. .The Jalan-Kalrock consortium successfully bid for the airline company.The consortium includes Jalan, who held shares in his personal capacity, and Fritsch, who held shares through his investment holding company Kalrock Capital Partners.JKC deposited bank guarantees worth ₹150 crore in compliance with the approved resolution plan which had been made effective from May 20, 2022. The consortium will make cash payments of ₹185 crore to the financial creditors. It will also be infusing ₹1,375 crore for payment to other stakeholders and ₹900 crore for capital expenditure..Senior Advocate Krishnendu Datta briefed advocates Pooja Mahajan, Mahima Singh, Arveena Sharma, and Mehak Nayak from Chandhiok & Mahajan and advocates Mustafa Kachwala and Aashish Vats who appeared for JKC.Advocates Rohan Rajadhyaksha, Dhirajkumar Totala, Tanya Chib and Madhur Arora, briefed by AZB & Partners appeared for the consortium of banks.Advocate Malhar Zatakia, also briefed by AZB & Partners, appeared for the resolution professional..[Read order]