India's National Company Law Tribunal (NCLT) has adjourned to December 6, 2022, a case in which financial creditors of Jet Airways (JAI, Mumbai International) are seeking to stop the take-over of the grounded airline by the Kalrock Capital-Murari Lal Jalan consortium, reports Money Control.

On November 29, the NCLT was to decide if a USD18.4 million bank guarantee from the consortium to finalise the airline's sale fulfilled requirements as set out in the June 2021 resolution plan. Creditors have warned they would seek approval to liquidate Jet Airways' assets if the court could not resolve the current deadlock.

The State Bank of India (SBI), on behalf of Jet Airways' financial creditors, had filed a response in the NCLT seeking the dismissal of the consortium's application to take-over the airline. While the matter has been postponed, the consortium will file a rejoinder [a defendant's answer to the plaintiff's reply in Indian law]. It has claimed to have met all the conditions precedent for the sale.

The lenders alleged the consortium's application to provide a guarantee instead of INR18.5 billion (USD22.7 million) in cash as per the NCLT-sanctioned resolution plan was an attempt to mislead the court on fulfilling the conditions precedent and to take control of Jet Airways while avoiding obligations under the approved resolution plan. They would face "grave harm and prejudice" if the relief sought by the investors was granted, they charged.

In June 2022, the lenders obtained a legal opinion from Supreme Court of India Solicitor General Tushar Mehta, who raised doubt about the consortium's compliance with the conditions precedent.

Jet Airways went into bankruptcy in April 2019 after it ran out of cash. As reported, creditors submitted more than INR78 billion (USD955.2 million) in claims. The restructuring plan approved by the NCLT in June 2021 would see creditors receive INR4.75 billion (USD58.2 million), while the consortium would contribute INR9 billion (USD110.2 million) to recapitalise the airline. Jet Airways was set to resume operations by the first quarter of 2022 under its new owners, but the transaction has been mired in squabbles on how the creditors should be paid.