The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted State Bank of India’s (SBI) insolvency plea against Jet Airways
under section 7 of the Insolvency and Bankruptcy Code (IBC), media reports stated.
The tribunal has also instructed that the resolution process be wrapped up in 90 days as the matter is of national importance, media reports stated.
Further, NCLT also terminated an earlier order passed by a Dutch court agreeing to initiate bankruptcy proceedings against the grounded airline based on pleas by some local vendors. It stated that tribunal cannot take note of the Dutch court order, as no non-Indian court is authorised to pass an insolvency order on a company registered in India, reports added.
NCLT has further directed to appoint an Insolvency Resolution Professional (IRP) for the debt-ridden airline company. IRP has been instructed to submit fortnightly progress reports on the CIRP process, with the first to be filed on July 5, the day of the next hearing, media reports added.
Jet Airways (India) Ltd's share price ended at Rs64, up by Rs30.9 or 93.35%, from its previous close of Rs33.10 on the BSE.
The scrip opened at Rs30.20 and touched a high and low of Rs77.35 and Rs27, respectively. A total of, 10,90,69,815 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs727.04cr.