New Delhi: The Mumbai bench of NCLT on Wednesday issued the final revival order of Jet Airways stating that the airline cannot claim historicity over slots on any grounds as it did not have any operating slots on the day of the commencement of the insolvency process.
"The Resolution Plan submitted by the consortium of Murari Lal Jalan and Florian Fritsch is hereby approved. It shall become effective from this date and shall form part of this order," the two judge-bench headed by Mohammed Ajmal and V. Nallasenapathy said adding that its order would be binding upon all stakeholders including the central and state governments.
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"The facts and circumstances would indicate that presently the slots cannot be restored to the Corporate Debtor on a historic basis. The thumb rule is 'use it or lose it," said the tribunal. "Be that as it may, we must remember that running an Airline, much less reviving one, is not a facile business. It involves an entire gamut of complex and diverse activities from land to sky and everything in between," the NCLT order added. The consortium proposes to invest Rs 600 crore in the first two years to repay creditors and acquire an 89.79% stake in the carrier.
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"The window period of future credit to passengers and employees and workmen shall be one year from the effective date. The beneficiaries shall, however, get themselves registered within 180 days from the effective date to avail the facility," said the NCLT order. The airline fell into bankruptcy in 2019 after failing to repay debts. In October 2020, the Committee of Creditors (CoC) of the grounded airline had approved the resolution plan submitted by a consortium of UK's Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.
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