NCLT orders Mumbai Airport not to remove assets of Jet Airways from airport premises

The Mumbai Bench of the National Company Law Tribunal (NCLT) temporarily restrained the Mumbai International Airport Ltd (MIAL) from removing Jet Airways’ assets from its premises, and directed it to allow the airline’s representatives, workmen and nominees, access to the airport premises [State Bank Of India vs Jet Airways].A Bench of judicial member Justice (retired) PN Deshmukh and technical member KK Vohra found that if the airline is not allowed to have access to the premises of the Mumbai Airport, it would have difficulty in maintaining aircrafts, engines, and auxiliary power units. The NCLT agreed with the applicant-airline that such maintenance activities are necessary to prevent deterioration in the value of the assets, as they need to be preserved for successful implementation of resolution plan of the applicant under the Insolvency and Bankruptcy Code.“Even otherwise, it is to be noted that one of the principal objectives of the Code is to provide for revival of the CD (Corporate Debtor) and every attempt ought to be made to revive the CD and Liquidation being the last resort.In view of the above and as it is also the case of the Applicant that despite cessation of Airline operations of the CD, the erstwhile Resolution Professional had, with the approval of the Committee of Creditors, retained a team of personnel to look for the maintenance of aircrafts and engines placed at MIAL Airport including Hangar," the Court observed, before holding that the applicant had made out a case in its favour..The defunct airline company filed a plea with the tribunal after MIAL requested it to vacate the airport premises on June 3, 2019. It was contended by the respondents that since the airline’s operations ceased on April 17, 2019, the permission granted to the applicant for the use of its premises stood revoked. They pointed out that the request for vacating the premises was made before the Corporate Insolvency Resolution Process was initiated against the company..The airline, through advocate Rohan Rajadhyaksha, prayed for directions to be issued to the respondent to allow the airline's representatives, workmen, nominees, etc. unhindered access to the airport premises for the purpose of maintenance of assets stored there. It was argued that these assets are required to be preserved for successful implementation of the Resolution Plan..Senior Advocate Vikram Nankani, representing MIAL, challenged the application contending that since the applicant-airline had ceased commercial operations, the request to the applicant to vacate the premises and hangars was made rightly.[Read Order]