Jet Airways Case: Supreme Court Dismisses JKC's Plea To Stop Aircraft Sale

The Supreme Court dismissed on Thursday a plea by Jalan Kalrock Consortium against an NCLAT order that allowed the sale of three Jet Airways aircraft to a Malta-based aviation company.

In accordance with the tribunal's opinion, the apex court said interference with the order is not warranted as the sale to Ace Aviation VII Ltd. would in fact help JKC revive the airline.

In December, the National Company Law Appellate Tribunal dismissed an appeal by JKC, the successful resolution applicant for Jet Airways, and permitted the sale of three aircraft.

The aircraft are expected to be sold for Rs 400 crore to Ace Aviation, which had argued before the NCLAT that aircraft depreciate rapidly, and delays in the sale render them less usable over time.

Therefore, the tribunal held that the NCLT did not commit any error in directing to conclude the sale agreement of three aircraft, for which a letter of intent had already been issued.

The NCLAT said this would also protect JKC's interests as the NCLT had directed that the proceeds from the sale of the aircraft be deposited in the escrow account and dealt with in accordance with the approved resolution plan.

The aircraft sale had faced a halt in November 2022 due to disputes between Jet Airways' lenders and JKC. Last October, the NCLT permitted the sale of the aircraft to Ace Aviation. This decision was based on an agreement between Ace Aviation and the monitoring committee of Jet Airways.