NCLT rejects Jet employees' plea for copy of Jalan's resolution plan

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SME Times News Bureau | 24 Feb, 2021
A top corporate tribunal has rejected the plea of Jet Airways employees seeking a copy of the resolution plan of the successful consortium of Murari Lal Jalan and Kalrock Capital.

The consortium's resolution plan has been accepted to restart the now defunct airline.

According to the National Company Law Tribunal (NCLT), it noted that the statutory mandate requires that the resolution plan can only be presented to the committee of creditors (CoC) before its approval and presented before the adjudication authority for its satisfaction in approving the same.

"The code or the regulation there under do not contemplate presentation or supply of the resolution or a copy thereof to any other body or entity," said the order by a two-bench judge of the Mumbai bench of NCLT.

It further said that the respondent, the resolution professional managing Jet Airways is duty-bound to maintain and ensure confidentiality of the resolution plan as provided under the Insolvency and Bankruptcy Board of India.

"Taking the facts of the case at hand and the law as it stands today into consideration we are of the humble view that the applicants cannot be found entitled to a copy of the resolution plan or any portion thereof."

The National Aviators' Guild, representing the pilots of the airline, Jet Aircraft Maintenance Engineers Welfare Association and the Jet Airways Cabin Crew Association, had moved the tribunal seeking a stay on any final order until their plea was decided by the tribunal.

In October last year, Jet's CoC had approved the Rs 1,000 crore bid by Jalan and Fritsch. The admitted debt of Jet Airways was Rs 8,000 crore.

In a statement in December, the consortium led by Murari Lal Jalan and Kalrock Capital said that it plans to operationalise Jet Airways by the summer of 2021, subject to certain conditions. Accordingly, the consortium announced the revival of Jet Airways as a full-service carrier.

"The Jet 2.0 programme is aimed at reviving the past glory of Jet Airways, with a fresh set of processes and systems to ensure greater efficiency and productivity across all routes," it had said.