Monday, September 26, 2022

NCLT prevents DGCA from de-registering a Jet Airways flight

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New Delhi: The National Company Law Tribunal (NCLT), which is currently hearing an insolvency plea against debt-ridden Jet Airways, prevented the Directorate General of Civil Aviation (DGCA) on Friday from deregistering a Jet Airways Boeing 777 plane which is under the possession of a Dutch cargo services provider. The plane had been seized by the cargo service provider in April after Jet failed to clear dues.

Dutch company had approached DGCA

After the airline was taken to the NCLT by its lead lender, State Bank of India, the Dutch company had approached the DGCA seeking to de-register the aircraft. On Friday, when the NCLT resumed hearing on the case, the Resolution Professional (RP) asked the tribunal for a direction to the DGCA against de-registration of the plane as it is under the moratorium period of bankruptcy process.

While accepting the RP’s plea against de- registration, the tribunal bench comprising of VP Singh and Ravikumar Duraisamy said that before passing any order, they would want to hear the DGCA and asked the RP to send notices in this regard.

The backdrop

Weeks before Jet Airways shut down operations in April, a logistics vendor had seized a Jet aircraft — a Boeing 777 — at the Amsterdam airport for non-payment of dues. The vendor had then taken the airline to a Dutch court seeking bankruptcy proceedings.

In May, the court in Netherlands ordered liquidation of the airline.
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Back at home, after Jet’s consortium of lenders initiated a bankruptcy plea against the airline on June 17, the Dutch vendor’s counsel approached the NLCT and unsuccessfully sought to be impleaded in the case. The location of the plane is not known as of now.

Next hearing on July 23

Meanwhile, the RP filed its first progress report on the resolution process on Friday. The tribunal has now adjourned the matter for July 23 when the RP would have to submit the second progress report.

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