After getting its Resolution Plan to revive Jet Airways approved in October 2020, the Jalan-Kalrock Consortium (JKC) that offered to pay banks & employees within 180 days, failed to live up to its commitment.

For over two years, the Jet Airways Committee (JKC) and the banks were at an impasse over the issue of “ownership transfer.” The consortium that had secured 99.22% of the votes from the Committee of Creditors (CoC) insisted that it would proceed with payments only after the banks officially handed over ownership of the airline. On the other hand, the banks maintained that JKC must first fulfil the agreed-upon terms and conditions precedent, including making the required payments, before ownership could be transferred. This stalemate prolonged the resolution process, with both parties unable to reach a consensus on how to finalise the deal.

In July 2023, banks pled before the Supreme Court seeking liquidation of the airline saying they see no signs of the JKC reviving the airline.

“JKCs conduct was unbecoming of an investor. There was a series of failures and non-compliances, which rendered the plan unworkable, therefore, liquidation was the best possible solution in the case of Jet Airways,” said Devesh Dubey, Counsel representing lenders of Jet Airways.

Lenders claim they incurred costs more than ₹300 crore and were incurring ₹

22.6 crore per month for maintaining the assets of aircraft.

The Jalan-Kalrock consortium didn’t just lose the case against banks, it also lost the ₹150 crore it submitted as bank guarantee and ₹200 crore it deposited in an escrow account.

“The amount of ₹200 crore already infused by the SRA stands forfeited. The Lenders/ Creditors are further permitted to encash the performance bank guarantee of ₹150 crore furnished by the SRA. We accordingly order so,” the Supreme Court order stated.

Jet’s staff union, the Jet Aircraft Maintenance Engineers Welfare Association (JAMEWA ) that had opposed the Resolution Plan, alleging it goes against the interest of employees, welcomed the SC order.

“Non-compliance of the plan was evident in March 2022 itself. We had said it in the NCLT and NCLAT in early 2022. That time they were not inclined to entertain our application/appeal. Almost two and half years later, we have come to the same conclusion. Seems the buyer didn’t have the capability and neither the intent. Final outcome was obvious,” said Amit Kelkar, Vice President – Jet Aircraft Maintenance Engineers Welfare Association.