Jet Airways should co-operate with Dutch Court Administrator: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has directed the Resolution Professional of Jet Airways to cooperate with the Dutch Court Administrator, which is also conducting insolvency proceedings against the debt-ridden carrier.
New Delhi: The National Company Law Appellate Tribunal (NCLAT) has directed the Resolution Professional of Jet Airways to cooperate with the Dutch Court Administrator, which is also conducting insolvency proceedings against the debt-ridden carrier.
A three-member NCLAT bench headed by Chairman Justice S J Mukhopadhyay has asked the Interim Resolution Professional (IRP) to place before it a draft agreement with terms of condition between him and the Dutch Court Administrator in next two weeks. During the proceedings, the Committee of Creditors (CoC) informed NCLAT that it was ready to cooperate with the Dutch Court Administrator. "IRP has to collate the claims of the all financial creditors and operational creditors, domestic or internationally," said NCLAT.
It also said," IRP is bound to take control of assets." NCLAT also said IRP may consult the CoC before finalising the draft. It listed the next hearing for September 20. On August 21, NCLAT had asked the CoC of Jet Airways whether it would cooperate with the Dutch Court Administrator. It had then listed next hearing for September 4. The appellate tribunal's direction came while hearing a petition filed by the Dutch Court Administrator against the order of the Mumbai bench of the National Company Law Tribunal (NCLT), which had declared overseas bankruptcy proceedings null and void in the Jet Airways insolvency case.
On July 12, NCLAT had stayed the orders of NCLT on the plea filed by the Dutch Court Administrator and agreed to hear it. The appellate tribunal had said that it will clarify the law on action to be taken when there are two insolvency petitions filed against the same company in two different countries. The Dutch Court Administrator has also agreed before NCLAT not to sell the confiscated assets of debt-ridden Jet Airways. Jet Airways is facing insolvency proceedings in the Netherlands and was declared bankrupt in response to a complaint filed by two European creditors.
In April, H Esser Finance Company and Wallenborn Transport had filed a petition citing unpaid claims worth around Rs 280 crore. Following this, a trustee in charge was appointed by the Dutch court and it had approached its Indian counterpart for access to the financials as well as assets of the airline. One of the Jet Airways aircraft, parked in the Schiphol Airport in Amsterdam, has already been seized. The grounded airline owes more than Rs 8,500 crore to lenders. It also has a large debt by way of accumulated losses to the tune of Rs 13,000 crore, vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore. The consortium of lenders is led by SBI.