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The National Company Law Appellate Tribunal (NCLAT) today 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.
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.
A three-member NCLAT bench headed by Chairman Justice SJ Mukhopadhaya today stated that under Section 18 of the Insolvency and Bankruptcy Code, it was the duty of the Resolution Professional to collate all the claims with respect to the Corporate Debtor, including claims by the financial creditors and operational creditors, both domestic and offshore/international.
The Resolution Professional is further bound to take control and custody of all the assets of the Corporate Debtor, it added.
“In view of such duties of IRP, how will he take collate the claims and and take control and custody of assets outside India?“, the Appellate Tribunal remarked.
The Bench thus directed the Jet Airways Resolution Professional to “sit with” with Dutch Administrator and draft a proposed terms of agreement.
The question as to whether the Committee of Creditors (CoC) has role to play in such a situation is kept open at the present, NCLAT said.
It nonetheless added that the CoC may advise the Resolution Professional with respect to arriving at terms of cooperation or that the Resolution Professional may consult the CoC for the same.
The final draft of agreement shall be placed before the NCLAT for approval.
While admitting State Bank of India’s insolvency plea against Jet Airways, the National Company Law Tribunal in June had rejected the Dutch Administrator’s plea to recognize their proceedings. The Dutch administrator had then approached the Appellate Tribunal against the rejection.
According to the order of NCLT passed on June 20, the total amount of debt granted to the Jet Airways by SBI alone stands at Rs 1,795.21 crore. There are several other financial creditors who have also granted a loan to Jet Airways. Also, the default amount stated to be Rs. 462.3938 crore were overdrawn amount over sanctioned limits of the cash credit facilities by SBI alone.
The Dutch Administrator was represented by Advocate Sumant Batra. The CoC was represented by Senior Advocate Ramji Sreenivasan.
The matter will be heard next on September 20.