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| Photo Credit: The Hindu
The Supreme Court on Wednesday partly heard a State Bank of India-led consortium’s problem to a choice of the National Company Law Appellate Tribunal to approve a decision plan proposed by Jalan-Kalrock consortium (JKC) for Jet Airways.
Appearing earlier than a three-judge Bench headed by Chief Justice of India D.Y. Chandrachud, senior advocate Harish Salve, for the SBI consortium, mentioned the state of affairs has develop into a “nightmare” for the lenders.
The lenders described the NCLAT verdict of March 12 as “ shocking” and a deviation from the Supreme Court path to encash a ₹150 crore financial institution assure in the direction of the preliminary tranche cost of ₹350 crore to the banks.
Mr. Salve mentioned the burden has fallen closely on the lenders. He mentioned airport dues alone have come to ₹1,000 crore and ₹22 crore a month was the “clock ticking” on the upkeep of the plane.
“Airlines require huge amounts of money and is not like the neighbouring grocery store you can buy, sell and make money… this way financial institutions will be hung out to dry,” Mr. Salve mentioned.
He mentioned “resolution” shouldn’t give technique to “dissolution”.
Senior advocate Mukul Rohatgi, showing for the JKC, denied the allegations. He mentioned the JKC had expended ₹700 crore to revive the airline and lenders had objected to its very transfer.
The court docket deferred the listening to to May 17 at 2 p.m.
