The owner of Jet Airways headquarters in Mumbai has moved NCLT, asking for the removal of Jet Airways’ Resolution Professional from the premises of HQ Siroya House, according to some media reports. Since the airline has not paid dues after the month of March, the license for space occupancy has been terminated, Luckystar Property Holdings, the legal owner of the premises, Siroya, told the Mumbai bench of National Company Law Tribunal (NCLT). The license was terminated early in June as Jet Airways defaulted on payments for April and May, the media reports said. Jet Airways had temporarily suspended its operation on April 17.
Grant Thornton’s Ashish Chhawchharia was appointed the RP for Jet Airways’ IBC proceedings. The legal counsel of Luckystar alleged that Chhawchharia took possession of the property as if it belonged to the grounded airline. Janak Dwarkadas, senior counsel of Luckystar property, also argued that the Resolution Professional does not possess any right on the property which is not owned by debtor Jet Airways but by someone else, the media reports said.
On RP’s part, it had cited the NCLT order, which granted a moratorium on Jet’s assets after the company was admitted into the insolvency proceedings late in June. Citing law, Dwarkadas added that a property’s possession belongs to a licensor and the licensee has only juridical possession till the time mentioned in any agreement. The Mumbai bench of NCLT has adjourned the matter to August 8.
Naresh Goyal-founded Jet Airways was moved to NCLT after the consortium of lenders led by The State Bank of India dragged the beleaguered airline for insolvency proceedings under the Insolvency and Bankruptcy Code. The lenders also appointed Ashish Chhawchharia as the Resolution Professional as is required under IBC. SBI had said that it was forced to drag the airline to court after it could not find any resolution for the airline even after months of trying.
Source: Financial Express, July 24, 2019