NCLAT Allows Dutch Administrator To Take Part In Jet Airways’ Insolvency Case
The NCLAT has also allowed the Dutch court administrator to attend lenders’ meetings in the Jet Airways insolvency case.
The National Company Law Appellate Tribunal allowed the Dutch court administrator to participate in the insolvency proceedings of Jet Airways (India) Ltd., setting aside a lower tribunal’s order.
The NCLAT bench, headed by Justice SJ Mukhopadhyay, approved the terms of cooperation between the resolution professional for the insolvent airline and the Dutch court administrator. It will also be allowed to attend the meetings of the committee of creditors during the resolution process, the appellate tribunal said.
The Dutch administrator had moved the NCLAT in July against the National Company Law Tribunal’s order that declared overseas bankruptcy proceedings null and void.
During the hearing, the Dutch administrator told the NCLAT that it won’t proceed with any action against Jet Airways during the pendency of the Indian proceedings. The NCLAT then stayed NCLT’s order and agreed to hear both the parties. The resolution professional and the Dutch administrator, too, agreed to cooperate in the Jet Airways insolvency case.
Jet Airways is facing bankruptcy proceedings in India and the Netherlands—a unique instance of cross-border resolution process. Proceedings at the Dutch court were initiated in April after two vendors of Jet Airways Netherlands filed a plea citing unpaid dues worth Rs 280 crore. In India, lenders to Jet Airways had approached the NCLT in June seeking insolvency action after they failed to find a buyer for the grounded airline.