Punjab National Bank moves NCLAT to quash Jet rescue plan

Punjab National Bank filed a petition before NCLAT on Thursday, seeking to quash a rescue plan for Jet Airways approved by NCLT in June.

Punjab National Bank has challenged the rescue plan for Jet Airways (India) Ltd, posing a fresh hurdle to the Jalan-Kalrock consortium’s attempt to revive the grounded carrier.

An insolvency plea against Jet Airways, which has been grounded since April 2019, was admitted by the NCLT in June 2019.(File photo: Mint/ Abhijit Bhatlekar)

The state-run lender filed a petition before the National Company Law Appellate Tribunal (NCLAT) on Thursday, seeking to quash a rescue plan for Jet Airways approved by the National Company Law Tribunal (NCLT) in June.

An insolvency plea against Jet Airways, which has been grounded since April 2019, was admitted by the NCLT in June 2019. Subsequently, the Mumbai bench of the bankruptcy court approved an insolvency resolution plan submitted by UK’s Kalrock Capital and Dubai-based entrepreneur Murari Lal Jalan in June 2021, which proposed to repay ₹1,183 crore to Jet’s creditors over five years.

In the court filing, PNB said it had submitted an initial financial claim of ₹963.47 crore and a revised claim of ₹956.11 crore, but the resolution professional overseeing the insolvency process had reduced the claim by ₹202.09 crore.

PNB further claimed the reduction of the claimed amount was “arbitrary, illegal”and “beyond the jurisdiction” of the RP.

In its filing, PNB also sought reinstatement of the deducted amount, besides an interim stay on the NCLT approval to the resolution plan submitted by the Kalrock-Jalan consortium.

The respondent to the court filing includes Ashish Chhawchharia, the resolution professional for the insolvency process, Jalan and Florian Fritsch, members of the Jalan-Kalrock consortium, and Jet Airways’ committee of creditors.

Mint has reviewed a copy of PNB’s NCLAT filing. A spokesperson for the lender declined to comment. Murarilal Jalan and Florian Fritsch did not respond to emails. Chhawchharia did not respond to calls and text messages.

NCLAT agreed to admit PNB’s plea, which will come up for hearing on September 21.

“Considering that at the relevant stage, PNB also consented to the resolution, a subsequent challenge and seeking reinstatement of its reduced admitted claims will not only disturb the scheme of payments and eventual resolution but may also caution stakeholders and creditors of Jet to proceed further under the plan, until the outcome of the appeal before NCLAT is known,” said Pranav Vyas, associate partner, DSK Legal.

Gopika Gopakumar in Mumbai contributed to the story.