News

June 14, 2019

NCLT Defers Hearing Of Jet Airways Insolvency Case To June 20 After Nobody Appears On Behalf Of The Airline On June 13


[ By Bobby Anthony ]

Jet-Airways

The National Company Law Tribunal (NCLT) adjourned the hearing of the Jet Airways’ insolvency case to June 20 after nobody appeared on behalf of the airline on June 13, when it was originally scheduled to be heard.

The NCLT will issue notices to the airline and if nobody appears on its behalf on June 20, the NCLT is likely to decide to admit the insolvency pleas ex-parte.

Earlier, two companies, namely Shaman Wheels and Gaggar Enterprises sent notices to the airline as well as moved the Mumbai bench of the NCLT against the airline to recover their dues.

Shaman Wheels has dues of more than Rs 6 crore, while Jet owes Gaggar Enterprises more than Rs 53 lakh.

Also, as reported previously, the National Aviators’ Guild (NAG), which is the pilots union of Jet Airways (India) Ltd, plans to file a plea with the National Company Law Tribunal (NCLT) shortly.

The plea will be filed at the NCLT for non-payment of dues as well as not providing a provision for gratuity payment to its staff.

The grounded airline which stopped operations in April has not paid salaries to its senior employees including its pilots, engineers as well as senior management since January 2019, while other Jet Airways employees have not received their salaries since March this year.

In another related development, a Dutch court has already declared the airline bankrupt overseas.

A court in North Holland passed the order ex-parte in response to a plea filed by two European creditors with dues of around Rs 280 crore, but an appeal is yet to be filed on behalf of the grounded airline.

Lenders to Jet Airways too have not made any significant headway in its sale process.

A State Bank of India-led consortium of lenders had offered to sell its 75% stake in the airline in April, after it failed to meet its debt obligations.

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