New Delhi: The National Company Law Appellate Tribunal (NCLAT) Friday agreed to hear a petition filed by a Dutch court administrator in the Jet Airways insolvency case as it stayed parts of a lower court order that declared overseas bankruptcy proceedings null and void.
Jet is facing insolvency proceedings in the Netherlands as well where it was declared bankrupt after it failed to pay two European creditors. Subsequently, a bankruptcy administrator was appointed by the Dutch court.
A three-member NCLAT bench headed by Justice S J Mukhopadhyay said it will clarify the law on action to be taken when there are two insolvency petitions filed against the same company in two different countries. At the proceedings, the Dutch administrator agreed not to sell the confiscated assets of the debt-ridden Jet Airways.
The NCLAT issued notice to the consortium of Jet Airways lenders and directed them to file their reply within two weeks. It fixed August 21 as the next date of hearing. The Dutch bankruptcy administrator could also “collate the claims of Offshore Creditors including financial creditors, operational creditors and other stakeholders” of Jet Airways and forward their details to the resolution professional (RP) of the defunct airline, the NCLAT said.
Last month, while admitting State Bank of India’s insolvency plea against Jet Airways, the Mumbai-bench of the National Company Law Tribunal (NCLT) had rejected the Dutch administrator’s plea to recognize their proceedings.