NCLAT Asks Jet Airways’ Insolvency Resolution Professional To Cooperate With Dutch Court Administrator
The National Company Law Appellate Tribunal has directed the Insolvency Resolution Professional of Jet Airways (India) Ltd. to cooperate with the Dutch Court Administrator, which is also conducting insolvency proceedings against the debt-ridden carrier.
The NCLAT’s direction came on a petition filed by Dutch Court Administrator against the order of NCLT’s Mumbai bench, which had declared overseas bankruptcy proceedings null and void in the Jet Airways insolvency case.
A three-member NCLAT bench, headed by Chairman Justice SJ Mukhopadhyay, has asked the Interim Resolution Professional to place before it a draft agreement with terms of condition between him and the Dutch Court Administrator in next two weeks.
During the proceedings, the Committee of Creditors informed NCLAT that it was ready to cooperate with the Dutch Court Administrator. "The IRP has to collate the claims of the all financial creditors and operational creditors, domestic or internationally," said the NCLAT. “IRP is bound to take control of assets."
Jet Airways' IRP may also consult the CoC before finalising the draft.
The NCLAT has listed the next hearing in the Jet AIrways insolvency case on Sept. 20.
On Aug. 21, NCLAT had asked the airline’s lenders whether they would cooperate with the Dutch Court Administrator. It had then listed the hearing for Sept. 4.
On July 12, NCLAT had stayed the NCLT orders on the plea filed by the Dutch Court Administrator and agreed to hear it. The appellate tribunal had said that it will clarify the law on action to be taken when there are two insolvency petitions filed against the same company in two different countries.
The Dutch Court Administrator has also agreed before NCLAT to not sell confiscated assets of debt-ridden Jet Airways.
Jet Airways is facing insolvency proceedings in The Netherlands and was declared bankrupt in response to a complaint filed by two European creditors. In April, H Esser Finance Company and Wallenborn Transport had filed a petition citing unpaid claims worth around Rs 280 crore.
The grounded airline owes more than Rs 8,500 crore to lenders. It also has Rs 13,000 debt by way of accumulated losses—including vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore.
On Wednesday, Jet Airways shares rose 4.90 percent to Rs 39.60 apiece on the BSE while the benchmark Sensex gained 0.44 percent to end the day at 36,724.74 points.