Home Insolvency & Bankruptcy SC asks JKC to deposit Rs 150 cr by 31 Jan

SC asks JKC to deposit Rs 150 cr by 31 Jan

SC asks JKC to deposit Rs 150 cr by 31 Jan

The Supreme Courtroom on 18 January 2024 directed Jalan-Kalrock Consortium (JKC) to deposit Rs 150 crore by 31 January in an escrow account between State Financial institution of India and JKC as a part of the decision plan of Jet Airways.

The apex court docket put aside the order of the Nationwide Firm Regulation Appellate Tribunal (NCLAT) of August 2023, and held that in case JKC doesn’t furnish the financial institution assure, the results of regulation will observe.

The NCLAT will now must resolve the enchantment by State Financial institution of India difficult the switch of Jet Airways’ possession to JKC by finish of March 2024.

“The query of adjustment of Rs 150 crore (by means of financial institution assure), we are going to hold it with the NCLAT. You (JKC) must (pay),” the apex court docket stated.

Solicitor Normal Tushar Mehta, showing for the lenders, instructed a bench of CJI D Y Chandrachud and Justices J B Pardiwala and Manoj Misra that the monetary collectors (banks/lenders) are struggling to get an quantity of Rs 350 crore in direction of the primary tranche cost, even two years after approval of the decision plan.

The entire admitted declare of the monetary collectors of Jet Airways is Rs 7,800 crore however the decision plan by JKC gives Rs 4,783 crore, which is payable in tranches in 5 years.

“At each stage, they(lenders) are objecting. If you happen to don’t need the financial institution assure, give it again,” Senior Advocate Mukul Rohatgi, showing for JKC stated on Thursday.

“This firm (JKC) solely engages in litigation. Every single day we stand earlier than the court docket. It isn’t only a query of Rs 150 crore. There are a number of circumstances within the Decision Plan that they can’t adjust to. There are three extra circumstances they haven’t complied with,” stated Further Solicitor Normal (ASG) N Venkataraman, showing for the lenders.

Jalan-Kalrock Consortium needed to pay Rs 350 crore to lenders as a situation precedent to the switch of possession of Jet Airways. Jet had deposited Rs 200 crore and remainder of the quantity was imagined to be adjusted from Rs 150-crore financial institution assure. Nonetheless, the SC has now stated that JKC should deposit the complete Rs 350 crore by 31 January.

Additionally See: Jet Airways lenders ask JKC to pay Rs 350 cr for switch of possession


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