Jet Airways case: Supreme Court asks Jalan-Kalrock to deposit Rs 150 cr by January 31

Jet Airways case: Supreme Court asks Jalan-Kalrock to deposit Rs 150 cr by January 31

The Supreme Court on Thursday directed the Jalan-Kalrock consortium (JKC), the successful resolution applicant for Jet Airways, to deposit Rs 150 crores in the State Bank of India (SBI) escrow account by January 31.

A three-judge bench headed by Chief Justice of India DY Chandrachud passed the direction after hearing the case at length for two days.

The court made it clear that if JKC did not furnish the bank guarantee, the consequences of law would follow. The amount will have to be deposited in an escrow account jointly held by SBI and JKC.

The top court also directed the National Company Law Appellate Tribunal (NCLAT) to decide the appeal by the State Bank of India, challenging the transfer of Jet Airways’ ownership to JKC, by March 31, 2024.

The bench set aside the NCLAT order of August last year by which it had permitted JKC to adjust Rs 150 crore from a bank guarantee for infusing Rs 350-crore payment.

Jet Airways went into insolvency after facing a severe debt crisis in 2019 that forced it to ground all operations.

Then JKC submitted the resolution plan that got approved in 2021. The company had time till May 2013 to pay Rs 350 crores due to SBI, but did not do so. Due to non-payment, the consortium approached NCLAT to restrain SBI from encashing the bank guarantees.

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