NCLAT dismisses plea by SBI on behalf of lenders to invoke Jet Airways’ bank guarantees

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The lenders to Jet Airways Ltd had their plea of invoking bank guarantees dismissed by The National Company Law Appellate Tribunal (NCLAT). The guarantees were provided by UAE based businessman Murari Lal Jalan and Florian Fritsch, who are the promoters of the London based Kalrock Capital, that has taken over the grounded carrier. This follows State Bank of India’s plea on behalf of the lenders in the appeal court to invoke the bank guarantees worth Rs 150 crore.

The court also gave more time to the consortium by granting it an exemption of the period from November 16th to March 3rd to clear payments to stakeholders.

The bench led by Justices Ashok Bhushan and Barun Mitra while giving statement said that it is no doubt that the MC lenders can invoke the bank guarantees, but it can only be done when Successful Resolution Applicant has failed to implement the plan. They added that instead of threatening to invoke the Performance Bank Guarantee, the MC lenders should take steps which may help into implementation of the Plan.

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Earlier, in November 2022, the Mumbai bench of National Company Law Tribunal (NCLT) allowed the Jalan-Kalrock consortium to take ownership of Jet Airways by implementing its proposed resolution plan.