Jet's lenders move SC against JKC's conduct, matter to be heard on Thursday

The State Bank of India-led consortium of lenders moved the Supreme Court alleging that the resolution plan of the Jalan-Kalrock consortium (JKC) cannot be implemented due to their conduct, seeking winding up of the debt-laden Jet Airways and initiation of the liquidation process.

A bench led by Chief Justice DY Chandrachud on Monday posted the matter for hearing on Thursday.

The JKC had recently finished an infusion of Rs 350 crore in the bankrupt airline, the source of which the creditors had questioned. Earlier last week, the creditors informed the National Company Law Appellate Tribunal (NCLAT) that the payment does not align with the resolution plan.

The lender alleged that the consortium is not serious and has not taken any appropriate steps to meet its obligations as per the approved Resolution Plan. “Various litigations relating to the resolution plan are pending before the Tribunal/SC. Their inaction in implementing the Resolution Plan and instead creating various hurdles, goes to indicate that the SRA has no intention whatsoever to implement the Resolution Plan,” the application states.

SBI has also raised issues with regard to ongoing investigations for fraud, and money laundering, among other things, against Florian Fritsch in three different countries – Lichtenstein, Austria and Switzerland

Additional Solicitor General N Venkataraman, representing lenders including SBI and other banks, told the NCLAT that there are apprehensions about the source of funds, which deposited money for JKC.”The payment is not compliant with the resolution plan as it mandates that the money is to be paid through JKC,” ASG submitted before a three-member NCLAT bench headed by Chairperson Justice Ashok Bhushan. Jet Airways had ceased operations in April 2019. After undergoing a bankruptcy resolution process, JK was to submit a sum of Rs 350 crore to the creditors by August 31. The consortium was eventually granted an extension until September 30 by the NCLAT.

(With inputs from Indu Bhan of ETBureau)


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