Supreme Court of India to Review Legal Challenge to Jalan Kalrock Consortium’s Acquisition of Jet Airways

The Supreme Court of India is set to hear a new legal appeal against the decision by the National Company Law Appellate Tribunal (NCLAT) that approved the transfer of ownership of the defunct Jet Airways to the Jalan Kalrock Consortium (JKC). This latest development adds another layer of complexity to the already tumultuous acquisition process.

The appeal, initiated by major creditors including the State Bank of India, JC Flowers Asset Reconstruction Private Limited, and Punjab National Bank, was filed on April 15. It contests the NCLAT’s March 12 order that sanctioned the transfer of Jet Airways to the consortium led by Murari Lal Jalan and Florian Fritsch. The appellants argue that JKC has not fulfilled its financial obligations under the agreed terms for taking over the airline, which ceased operations in 2019 with debts nearing INR 80 billion (approximately USD 960 million).

The appellants also expressed their dismay over the NCLAT’s decision, highlighting that it contradicts previous Supreme Court directives regarding the sale process. They filed for an immediate stay on the transfer on April 18, which brought the case back into the legal spotlight.

This legal challenge marks yet another delay in Jet Airways’ revival plans, initially set in motion by the National Company Law Tribunal’s approval of a restructuring plan in June 2021. The plan entailed a series of payments to creditors in exchange for control of the airline. However, disagreements over compliance with these terms have led to ongoing disputes and subsequent court actions.

As the Supreme Court prepares to review this appeal, stakeholders in India’s aviation industry and Jet Airways’ creditors are keenly watching for a resolution that could finally determine the future of the once-prominent airline.