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Punjab National Bank Moved To NCLAT To Quash The Plans Of Recommencement Of Flying By Jet Airways

Legal Correspondent: Sonam Awasthy

3rd September 2021: PNB approached NCLAT to quash the resume flight operation of jet airways. As PNB alleged that jet airways went against the insolvency bankruptcy code (IBC). The NCLAT issue a notice over the PNB’S petition and interim plea seeking stay over for the execution of the resolution plan. The resolution professional for the insolvency process, members of Jalan kalrock consortium, jet airways committee of creditors they have to respond within 2 weeks and rejoinder, if by PNB then within 1 week.

When mumbai branch of bankruptcy court approved the resolution plan submitted by jalan kalrock consortium which was proposed to repay the jet airways over 5yrs of amount RS.1,183 crore. PNB challenged the approval of resolution plan of jalan consortium. The bank stated that reduction in the amount is arbitrary, illegal and beyond jurisdiction. As the amount was Rs.963.47 crore after deduction it is Rs. 956.11 crore and it also claim that deduction in amount leads to disturbance in payments as well as to the stakeholder and creditors of jet airways for proceeding the further plan. The second petition was given by the jet airway employees to NCALT where they claim for the payment of pending amount of Rs. 1200 crore and retirement benefit under the resolution plan. NCLAT given 2 week time to jalan kalrock consortium to respond the claim of employees. On 9th September PNB told to NCLAT that deduction on amount is against the resolution plan in the committee of creditors, wants to reinstate the entire claim. Jet airways is going through the resolution process from past 2years under insolvency and bankruptcy code (IBC) and resolution professional manages all the affairs.


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