Updated January 19th, 2024 at 17:13 IST
SC asks Jet Airways owners to deposit Rs 150 crore in SBI's escrow account
The Supreme Court directed Jalan-Kalrock consrotium, the new owners of the indigent Jet Airways, to deposit Rs 150 crore in State Bank of India's escrow account
The Supreme Court (SC) directed Jalan-Kalrock consrotium, the new owners of the indigent Jet Airways, to deposit Rs 150 crore in State Bank of India's (SBI) escrow account by January 31. If the company fails to make the payment in the given time, then the consortium is not in compliance with the terms of resolution plan for Jet Airways revival, the SC said on Thursday.
Escrow refers to a legal concept where an asset or money is held by a third party on behalf of two other parties that are in the process of completing a transaction.
The top court has also drossed to allow the separate plea of the Jet Aircraft Maintenance Engineers Welfare Association seeking payment of provident fund and gratuity dues. The resolution plan will become 'unworkable,' if the additional money is already been received.
As per the lawyers for the workmen, the consortium has to pay over Rs 200 crore towards dues on account of PF and gratuity, media reports said.
The decision was taken by the bench comprising Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra. The bench announced that the insolvency appelate tribunal, National Company Law Appellate Tribunal (NCLAT) was not correct to adjust Rs 150 crore from the performance bank guarantee (PBG) towards payment of Rs 350 crore by the consortium to the lenders led by the SBI.
"In the circumstances, we have come to the conclusion that the NCLAT was not justified in holding in its order dated August 28, 2023 that the last tranche of Rs 150 crores, which was to be paid, would be adjusted against the PBG," the bench said.
The total amount to be paid out by the consortium is Rs 350 crore. Out of which Rs 200 crore was deposited in two equal instalments of Rs 100 crore and the remaining Rs 150 crore was adjusted from the PBG to which lender banks led by the SBI objected.
Published January 19th, 2024 at 13:51 IST