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"After a long and arduous litigation Jet Airways’ insolvency woes have finally reached a conclusion. At least that is the hope unless the litigation is taken to the Supreme Court" write our partner Poonam Sengupta and associate Pradyumn Sharma in their article titled, "Jet Airways’ Return to the Skies' published in Lexology. https://lnkd.in/gcAPmEFB #aviation #jetairways #insolvency #jsa #leadinglawfirm #leadinglawyers

🖋️ 𝙋𝙧𝙤𝙪𝙙 𝙩𝙤 𝙨𝙝𝙖𝙧𝙚 𝙤𝙪𝙧 𝙡𝙖𝙩𝙚𝙨𝙩 𝙘𝙤𝙡𝙡𝙖𝙗𝙤𝙧𝙖𝙩𝙞𝙫𝙚 𝙖𝙧𝙩𝙞𝙘𝙡𝙚 𝙤𝙣 𝘼𝙫𝙞𝙖𝙩𝙞𝙤𝙣 𝙄𝙣𝙨𝙤𝙡𝙫𝙚𝙣𝙘𝙮 𝙞𝙣 𝙄𝙣𝙙𝙞𝙖, 𝙘𝙤-𝙖𝙪𝙩𝙝𝙤𝙧𝙚𝙙 𝙬𝙞𝙩𝙝 Avni Singhania , Anjana Devi K, 𝙖𝙣𝙙 Aayush Shah. 🔍 𝙏𝙝𝙞𝙨 𝙥𝙞𝙚𝙘𝙚 𝙚𝙭𝙥𝙡𝙤𝙧𝙚𝙨 𝙩𝙝𝙚 𝙞𝙣𝙩𝙧𝙞𝙘𝙖𝙩𝙚 𝙙𝙮𝙣𝙖𝙢𝙞𝙘𝙨 𝙗𝙚𝙩𝙬𝙚𝙚𝙣 𝙩𝙝𝙚 𝘾𝙖𝙥𝙚 𝙏𝙤𝙬𝙣 𝘾𝙤𝙣𝙫𝙚𝙣𝙩𝙞𝙤𝙣 𝙖𝙣𝙙 𝙩𝙝𝙚 𝙄𝙣𝙨𝙤𝙡𝙫𝙚𝙣𝙘𝙮 𝙖𝙣𝙙 𝘽𝙖𝙣𝙠𝙧𝙪𝙥𝙩𝙘𝙮 𝘾𝙤𝙙𝙚 (𝙄𝘽𝘾), 𝙝𝙞𝙜𝙝𝙡𝙞𝙜𝙝𝙩𝙞𝙣𝙜 𝙩𝙝𝙚 𝙪𝙣𝙞𝙦𝙪𝙚 𝙘𝙝𝙖𝙡𝙡𝙚𝙣𝙜𝙚𝙨 𝙞𝙣 𝙩𝙝𝙚 𝙖𝙫𝙞𝙖𝙩𝙞𝙤𝙣 𝙨𝙚𝙘𝙩𝙤𝙧: ✈️ Analyzing Go First’s proactive insolvency filing due to persistent engine supply issues. 📜 Detailing how the IBC aims to safeguard stakeholders and facilitate restructuring, tailored to the needs of the aviation industry. 🌐 Discussing the protective measures for aircraft lessors under the Cape Town Convention, ensuring their rights during insolvency scenarios. 🏛️ Reflecting on India's efforts to harmonize its insolvency laws with global standards, promoting a secure environment for aircraft leasing. A special thank you to Laura Pierallini for her support in getting this article published through the International Bar Association. 𝙒𝙚 𝙞𝙣𝙫𝙞𝙩𝙚 𝙚𝙫𝙚𝙧𝙮𝙤𝙣𝙚 𝙩𝙤 𝙧𝙚𝙖𝙙 𝙖𝙣𝙙 𝙙𝙞𝙨𝙘𝙪𝙨𝙨 𝙝𝙤𝙬 𝙩𝙝𝙚𝙨𝙚 𝙧𝙚𝙜𝙪𝙡𝙖𝙩𝙤𝙧𝙮 𝙛𝙧𝙖𝙢𝙚𝙬𝙤𝙧𝙠𝙨 𝙞𝙢𝙥𝙖𝙘𝙩 𝙗𝙤𝙩𝙝 𝙩𝙝𝙚 𝙡𝙚𝙜𝙖𝙡 𝙖𝙣𝙙 𝙖𝙫𝙞𝙖𝙩𝙞𝙤𝙣 𝙡𝙖𝙣𝙙𝙨𝙘𝙖𝙥𝙚𝙨. #AviationLaw #Insolvency #IBC #CapeTownConvention #LegalInsight #BusinessLaw #KsinghaniaCo #India

Supreme Court Orders Liquidation of Jet Airways: Upholding the Integrity of the IBC In a landmark judgment, the Supreme Court of India has directed the liquidation of Jet Airways (India) Limited, marking a decisive outcome in the airline's prolonged insolvency proceedings. This verdict, while disappointing for those anticipating the airline's revival under the Jalan-Kalrock Consortium (SRA), underscores the Court's commitment to upholding the principles and objectives of the Insolvency and Bankruptcy Code (IBC). Central Tenets of the Judgment: * Sanctity of the Resolution Plan: The Court unequivocally emphasized the binding nature of the approved resolution plan, rejecting any deviation from its terms, including the stipulated timelines for payment obligations. * Time-Bound Resolution: The judgment underscored the critical importance of timeliness in insolvency resolution, expressing concern over the inordinate delays that plagued the Jet Airways case. * Commercial Wisdom of the CoC: The Court reaffirmed the importance of respecting the commercial decisions of the Committee of Creditors (CoC), recognizing their expertise and informed decision-making. Shortcomings and Recommendations: The Jet Airways case has illuminated certain deficiencies in the IBC framework, prompting the Court to offer recommendations for its improvement. These include: * Enhanced Supervision of Resolution Plans: The Court proposed statutory provisions for the mandatory constitution of a Monitoring Committee to supervise the implementation of resolution plans, ensuring greater accountability and transparency. * Strengthening the NCLTs and NCLAT: The Court expressed concerns about the functioning of these tribunals, suggesting measures to improve their efficiency, expertise, and adherence to judicial orders. A Balanced Perspective: While acknowledging the setback for the SRA and those hoping for Jet Airways' revival, the judgment prioritizes the integrity and effectiveness of the IBC framework. It serves as a potent reminder of the importance of timely resolution, strict adherence to the approved resolution plan, and the sanctity of the CoC's commercial wisdom. Implications for the Insolvency Ecosystem: This judgment is poised to have a far-reaching impact on the Indian insolvency landscape. It clarifies the expectations and responsibilities of all stakeholders involved in insolvency resolution, emphasizing the need for ethical conduct, timely action, and a commitment to the objectives of the IBC. #IBC #Insolvency #JetAirways #SupremeCourt #CorporateLaw

Supreme Court Orders Liquidation of Jet Airways! The Supreme Court has officially ordered the liquidation of Jet Airways, once India's premier airline, after the failure of the Resolution Plan by the Jalan-Kalrock Consortium (JKC). After years of legal battles and failed attempts at revival, the court has ruled that liquidation is in the best interest of creditors, employees, and other stakeholders. Despite the National Company Law Appellate Tribunal (NCLAT) approving the takeover by JKC, the consortium failed to infuse the promised ₹350 crore, leading to this final decision. The court's ruling underscores the importance of adhering to commitments in insolvency processes, especially when livelihoods and industries are at stake. This marks the end of an era but also opens up important discussions on how we can better manage corporate insolvencies in the future.

The Colombian Superintendency of Companies (insolvency judge) recently issued a key decision in Viva Air’s liquidation proceedings concerning the priority treatment of international interests under the Cape Town Convention in insolvency cases.   Our asset finance team examines this decision and its implications in this client briefing: https://lnkd.in/e2PF49Mp #CapeTownConvention #InsolvencyLaw #AssetFinance #VivaAir

#GoFirst, formerly known as #GoAir , has faced significant challenges. Let's delve into the details (April 2024): 1. Voluntary Insolvency: Go First filed for voluntary insolvency resolution proceedings in May 2023. The airline has suspended its flights & till date remain suspended. 2. Engine Issues: The grounding (initially 25 Aircraft )was primarily due to the non-supply of engines by Pratt & Whitney (P&W). Go First had to apply to the company law tribunal after P&W refused to comply with an award issued by an emergency arbitrator appointed in accordance with the 2016 Arbitration Rules of the Singapore International Arbitration Centre (SIAC). Pratt & Whitney had been directed to take all reasonable steps. 3. Debt and Liabilities: The airline reportedly owes over $798 million to financial creditors. 4. Compensation Claim: Go First has sought compensation worth **₹8,000 crore** in the Singapore International Arbitration Centre 5.High Court Directive: The High Court has directed the Directorate General of Civil Aviation (DGCA) to immediately process the applications submitted by Go First’s lessors for deregistering the aircraft leased to the airline. This directive aims to address the ongoing financial crisis faced by Go First. 6.Operational Impact: Deregistering an aircraft means that it is no longer legally registered with the aviation authorities. As a result, the aircraft cannot be used for commercial flights. 7.Recovery Challenges: If #GoFirst aims to recover and resume operations, it will need to re-register or acquire new aircraft. This process can be time-consuming and costly. The recent Delhi High Court ruling permitting lessors to de-register and reclaim the 54 Go First aircraft has ended creditors' hopes of obtaining a favorable valuation for the now-defunct airline. Without these planes, there are few assets left for the airline to be sold as a viable entity, potentially disrupting the current bankruptcy proceedings with no prospect of revival The lenders are currently placing their hopes on arbitration proceedings underway in Singapore and a sizable land parcel in Thane as potential avenues for recovering some funds from the now-defunct airline. However, the situation remains challenging, and the airline's revival prospects appear bleak

Breaking News: Go First Insolvency Hearing Adjourned Until July The NCLT has postponed Go First's insolvency hearing to July 11th, 2024. This follows a critical development - a Delhi High Court order deregistering Go First's leased aircraft. The airline's future is uncertain as the Resolution Professional declined to comment on their next steps. Engine lessors are pressuring the tribunal for a swift resolution. This case is a cautionary tale for the aviation industry, highlighting the challenges faced by airlines and lessors in financial distress. Stay connected for further updates on this ongoing saga. 🔗 Details of the order: https://lnkd.in/ecFRsmTq #GoFirst #Insolvency #NCLT #AviationIndustry #DelhiHighCourt #IBC #Seradena

✈𝐒𝐂 𝐎𝐫𝐝𝐞𝐫𝐬 𝐋𝐢𝐪𝐮𝐢𝐝𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐉𝐞𝐭 𝐀𝐢𝐫𝐰𝐚𝐲𝐬✈ The Supreme Court delivers landmark judgement on the liquidation of Jet Airways under the Insolvency and Bankruptcy Code (IBC). This marks a dramatic shift in the nation's aviation and corporate landscape. 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈 𝒕𝒉𝒆 𝒎𝒂𝒕𝒕𝒆𝒓: The airlines lender challenged the decision of the National Company Law Appellate Tribunals (NCLAT), pertaining to transferring of airlines ownership to the Successful Resolution Applicant without paying the full Rs. 350 crores as specified in the approved Resolution Plan. The apex court criticised the NCLAT as it misled evidence on record since the performance bank guarantee of Rs. 150 crores could not have been adjusted against the payment of Rs. 350 crores. The court further observed that the SRA contravened the terms of Resolution Plan and failed to fulfil the conditions necessary to revive Jet Airways. Since the Resolution Plan was not possible to be implemented, the court directed for liquidation of Jet Airways. The matter provides a paradigm shift in the approach of SRA to an IBC proceeding, and requirement of higher due diligence from Resolution Professional and Committee of Creditors on scrutinization of prospective Resolution Applicants. Comments are appreciated. Author: Chaitanya Narad, student of Law Centre- ll, Faculty of Law, University of Delhi Seradena #JetAirways #IndianAviation #SupremeCourt #CorporateGovernance #Airlines #NCLAT #CIRP #CorporateInsolvency #Law #Legal #Seradena

'Supreme Court Resolves Performance Bank Guarantee Dispute in Jet Airways Case: NCLAT Urged to Expedite Appeal' In the recent Hon'ble Supreme Court ('SC') case, SBI & Ors. v. Consortium of Murari Lal Jalan and Florian Fritsch & Anr., a pivotal decision was made regarding Jet Airways Limited's Resolution Plan. The SC addressed a dispute between the Successful Resolution Applicant and lenders, primarily focusing on compliance issues. Despite not finalizing a verdict on the case's merits, the Court emphasized strict adherence to the Plan's original terms pending the National Company Law Appellate Tribunal's decision. This judgment highlights the importance of maintaining the integrity of the insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. It emphasizes the judiciary's role in ensuring expedient and fair resolutions, setting a significant precedent for future proceedings. For a detailed analysis please read the article authored by our associate Mr. Pranav Dabas here: https://lnkd.in/dZ_DuCiM #MetalegalAdvocates #MetalegalCourtRuling #PerformanceBankGuarantee #SupremeCourt #JetAirways #NCLAT #LegalAnalysis

In the recent decision to order Jet Airways' liquidation, the Supreme Court strongly criticized the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) for inefficiencies and non-compliance with judicial norms. The bench, led by Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra, voiced serious concerns about the Tribunals' operations and underscored the need for members with "impeccable integrity" who are free from political influence. Justice Pardiwala's judgment highlighted multiple issues, including: 1. Tribunal Efficiency and Domain Knowledge: The Court observed that NCLT and NCLAT members often lack the expertise to handle complex insolvency cases, which require extensive legal knowledge and attention to detail. The Tribunals were also criticized for not adhering to full working hours, leading to delays in insolvency resolutions. 2. Judicial Discipline: A strong admonition was directed at the Tribunals for disregarding Supreme Court orders, warning that future acts of defiance would not be tolerated. The Court reminded members of their responsibility to uphold judicial propriety and prioritize timely case hearings. 3. Listing and Infrastructure Issues: The judgment flagged flaws in listing practices, noting that urgent insolvency matters often go unaddressed, causing financial losses as asset values erode. The Court also > criticized the persistent vacancies and inadequate infrastructure, which hinder timely resolutions as per the Insolvency and Bankruptcy Code (IBC), 2016. The Supreme Court's ruling emphasizes that to achieve effective insolvency resolution, Tribunals need competent members with a commitment to efficiency and judicial discipline. The case, *State Bank of India and Ors. v. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch and Anr.,* underscores the judiciary's call for improvements in the functioning of these Tribunals and adherence to legal protocols. #JetAirways #SupremeCourtOfIndia #IndiaLegalSystem #IndianLegalSystem #LegalIndia #Litigations #Lawyers #Advocates #Judgements #IndianLegal #LawIndia #IndiaLaw #CaseLaw