The National Company Law Appellate Tribunal (NCLAT) on Thursday allowed the Dutch court administrator of Jet Airways to attend the committee of creditors (CoC) meetings of the bankrupt carrier.
The order assumes significance as the Insolvency and Bankruptcy Code 2016 does not deal with cross-border insolvency, which means when insolvency proceedings are moved against the same company in two different countries.
A three-member NCLAT bench said the Dutch administrator would be part of the CoC meeting and would be given minutes of the meetings.
The appellate tribunal also set aide the earlier order of the Mumbai bench of the National Company Law Tribunal (NCLT), which had refused to recognise the Dutch insolvency proceedings.
NCLT had barred Dutch court administrator from taking part in the Jet insolvency proceedings in India.
The appellate tribunal order came after the resolution professional (RP) of Jet and the Dutch court administrator agreed to coordinate in the insolvency proceedings ongoing in India.
Earlier, during the last hearing, NCLAT had directed the Jet RP and Dutch court to file the terms and conditions of their agreement.
NCLAT’s direction came while hearing a petition filed by the Dutch court administrator against the order of the Mumbai bench of NCLT, which had declared overseas bankruptcy proceedings null and void.
Jet is facing insolvency proceedings in the Netherlands and was declared bankrupt in response to a complaint filed by two European creditors.
In April, H Esser Finance Company and Wallenborn Transport had filed a petition citing unpaid claims worth around Rs 280 crore. Following this, a trustee in charge was appointed by the Dutch court and it had approached its Indian counterpart for access to the financial as well as assets of the airline. One of the Jet Airways aircraft, parked in the Schiphol Airport in Amsterdam, has already been seized.
The grounded airline owes more than Rs 8,500 crore to lenders. It also has a large debt by way of accumulated losses to the tune of Rs 13,000 crore, vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore. The consortium of lenders is led by SBI.
Source: Financial Express, September 27, 2019