Jet Airways Resolution Plan: APPROVED by NCLT but Tribunal makes these aspects clear - All you need to know
National Company Law Tribunal (NCLT) has approved the resolution plan of Jet Airways. However, the airline company will not be given its previous slots. The tribunal has made it clear to Jet Airways that the company has no rights over the slots and it will be the decision of the Director General of Civil Aviation (DGCA) to do so
National Company Law Tribunal (NCLT) has approved the resolution plan of Jet Airways. However, the airline company will not be given its previous slots. The tribunal has made it clear to Jet Airways that the company has no rights over the slots and it will be the decision of the Directorate General of Civil Aviation (DGCA) to do so.
Jet Airways has 90 days to get all approvals from the Ministry of Civil Aviation and other government authorities. The bench had reserved its order after the hearings concluded. The order was pronounced orally and the written order with complete details is likely to be published in a day’s time.
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Meanwhile, DGCA had indicated that if any binding order related to the allocation of slots was given by the NCLT, it will be liable for challeng in the appellate tribunal (NCLAT).
It had said that the allocation of slots will be made on the basis of an existing policy.
A two-member bench headed by Janab Mohammed Ajmal today immediately cleared the air on the allotment of slots issue saying that no such order has been passed with regards to the allotment of slots to Jet Airways.
A consortium of London-based Kalrock Capital and the UAE-based businessmen Murari Lal Jalan had submitted their bids for resolution.
Claims in the resolution plans were made regarding the allotment of previous slots and the assurance of a nod for flying to international destinations.
During the hearing, both the civil aviation ministry and DGCA had argued that the allocation of slots was discretion of the aviation regulator and airlines had no right on the allocation of preferred slots.
DGCA and the ministry had also argued that Jet Airways must take a fresh Air Operator Permit (AOP) and security clearances.
The consortium had been demanding restoration of older slots to Jet Airways along with all the requisite clearances.
Meanwhile, the DGCA had countered this by saying that the responsibility of security and other obligations rested with the regulator. It had appealed the NCLT to not pass an adverse binding order.
Naresh Goyal was the founder and Chairman of the company. The airline owed Rs 7,800 cr to banks which it failed to repay. Goyal was forced to resign from the company board. The company shut operations in April 2019.
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