NCLT admits insolvency plea against Jet Airways

TIL Desk/Business/Mumbai/ The National Company Law Tribunal (NCLT) has admitted the State Bank of India’s insolvency plea against the now-grounded Jet Airways. The Mumbai bench of the tribunal has directed the Insolvency Resolution Professional (IRP) to make efforts to resolve the matter within three months, given it is of national importance.

It has also asked the IRP to submit a fortnightly progress report in the case and directed to submit the first report on July 5, when the bench would next hear the case.  Under the Insolvency and Bankruptcy Code (IBC), lenders have 180 days time with a extension window of 90 days to resolve a stressed account. If a resolution is not achieved in this period, the NCLT can start liquidation process.

The creditors, led by the SBI, approached the NCLT on Tuesday under IBC to recover their dues of about Rs 8,500 crore. The banks approached the bankruptcy court after they found the takeover proposals received from prospective investors – Etihad Airways and Hinduja Group – unimpressive. They also rejected the conditions put forward by the Gulf carrier for infusing funds into the defunct carrier.