NCLAT approves transfer of Jet Airways’ ownership to Jalan Kalrock Consortium

The National Companies Law Appellate Tribunal (NCLAT) on Tuesday, March 12, approved the transfer of Jet Airways to the Jalan Kalrock Consortium (JKC). The transfer is to be completed within 90 days, the tribunal said.

Within the same timeframe, JKC would be required to obtain the air operator’s certificate, the bench added. The certification is essential for the consortium to operate the grounded airline.

Notably, Jet Airways’ control was transferred to JKC last year by the National Company Law Tribunal (NCLT), but the airline’s lenders had subsequently approached the appellate body against the order.

The NCLAT, while upholding the ownership transfer, also allowed the consortium to encash bank guarantees worth ₹150 crore for the first tranche of payment of ₹350 crore to Jet Airways’ lenders.

When will Jet Airways resume operations?

The resumption of operations would depend on the successful transfer of ownership to JKC, as well as the obtaining of the air operator’s certificate by the consortium. This would be followed by other regulatory approvals, including the nod from the Directorate General of Civil Aviation (DGCA).

Notably, Jet Airways, reeling under financial stress, was grounded in 2019. The insolvency plea against the company was filed by the State Bank of India (SBI), its biggest lender. In 2021, JKC emerged as the successful bidder with its ₹4,783-crore revival package.

The sale process was halted in November 2022 by the Jet Airways’ monitoring committee, amid the legal conflict between the airline’s lenders and the consortium.