NCLAT asks the Jet Airways IRP to cooperate with the Dutch court administrator

NEW DELHI: The National Court of Appeals for Company Law (NCLAT) has directed the professional resolution of Jet airways Cooperate with the administrator of the Dutch court, which is also conducting an insolvency proceeding against the indebted carrier.

A three-member NCLAT bank headed by President Justice S J Mukhopadhyay has asked the interim resolution professional (IRP) to present to him a draft in accordance with the terms of condition between him and the administrator of the Dutch court in the next two weeks.

During the process, the Creditors Committee (CoC) informed NCLAT that it was ready to cooperate with the administrator of the Dutch court.

IRP has to collate the claims of all financial creditors and operational creditors, national or international, said NCLAT.

He also said: IRP is required to take control of the assets.

NCLAT also said that IRP can consult the CoC before finalizing the draft. He 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 address of the court of appeals came upon hearing a petition filed by the administrator of the Dutch court against the order of the Mumbai court of the National Court of Corporate Law (NCLT), which had declared bankruptcy proceedings null and void in the foreigner in the Jet airways insolvency case.

On July 12, NCLAT had suspended NCLT orders on the statement presented by the Dutch court administrator and agreed to listen to it.

The appeals court had said it will clarify the law on the measures to be taken when two insolvency petitions are 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.

After this, the Dutch court appointed an administrator in charge and approached his Indian counterpart to access the airline's finances and assets.

One of the Jet airways aircraft, parked in the Schiphol Airport in Amsterdam, has already been seized.

The punished airline owes more than 8,500 crore to lenders. It also owns a large debt for accumulated losses totaling Rs 13,000 million, supplier fees of more than Rs 10,000 million and salary quotas of more than Rs 3,000 million. The consortium of lenders is led by SBI.

comments