SBI: NCLT admits SBI’s insolvency plea, appoints interim RP–Economic Times

After months of financial trouble, Jet Airways had decided to temporarily suspend operations on April 17.

The National Company Appellate Tribunal today admitted SBI’s insolvency plea against Jet AirwaysNSE 89.88 %. NCLT has directed the Interim Resolution Professional (IRP) to try and resolve the matter within three months. It further asked IRP to submit the status report on a fortnightly basis. The first status report will have to be filed by July 5, directed the tribunal.

Admitting the plea, NCLT reiterated that IRP should try to resolve Jet Airways matter within 3 months as the matter is of national importance. The insolvency tribunal also rejected judgement by Netherlands court on Jet’s liquidation.

SBI, along with 26 other banks, on Monday, had unanimously decided to take the airline to the NCLT to recover dues, filing a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC). The move came after the lenders failed to get a suitable offer from any of the potential investors.

Yesterday, a Jet Airways pilots’ union and two Dutch logistics vendors also moved the NCLT, asking that they be made parties to the insolvency proceedings.

Before finally having decided to approach the NCLT, the lenders had received only one bid from Etihad Airways, which had offered to take a minority stake but had set conditions. There was an attempt to rope in the Hinduja Group as the other significant investor but the talks did not materialise.

The NCLT’s Mumbai Bench last week had adjourned hearings in insolvency cases filed by two operational creditors — Shaman Wheels and Gaggar Enterprises — against Jet Airways to June 20, as representatives of the grounded airline were not present. The lenders will now join the two operational creditors.

After months of financial trouble, Jet Airways had decided to temporarily suspend operations on April 17.