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𝐄𝐱𝐩𝐥𝐨𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐋𝐚𝐧𝐝𝐦𝐚𝐫𝐤 𝐉𝐞𝐭 𝐀𝐢𝐫𝐰𝐚𝐲𝐬 𝐂𝐫𝐨𝐬𝐬-𝐁𝐨𝐫𝐝𝐞𝐫 𝐈𝐧𝐬𝐨𝐥𝐯𝐞𝐧𝐜𝐲 𝐂𝐚𝐬𝐞 🚀 We delve into the significant Jet Airways case, which marked the first instance of cross-border insolvency proceedings in India. This video covers the key decisions made by the NCLT and NCLAT, the challenges faced, and the impact on insolvency law. Join us as we explore this landmark decision and its implications for the future of corporate insolvency. #JetAirways #CrossBorderInsolvency #InsolvencyLaw #NCLT #NCLAT #Bankruptcy #IndianJudiciary #CorporateInsolvency #LegalMilestones #InsolvencyProceedings #InternationalBankruptcy #CorporateLawIndia #LegalDecisions #AmicusPublicoLLP

The recent High Court decision in favor of the lessor regarding the Go First aircraft repossession case marks a significant milestone in aviation lease disputes. This ruling underscores the judiciary’s support for contractual obligations and creditor rights under current aviation and insolvency laws. The question now is whether the RP, appointed to oversee the restructuring process under bankruptcy proceedings, will abide by this judgment or opt to escalate the matter to the Supreme Court. It is crucial for the integrity of the insolvency process that the RP respects this decision. Adhering to the court’s directive not only facilitates a smoother resolution to this complex case but also sets a precedent for future lease disputes. This is particularly important in maintaining lessee-lender relationships and ensuring that similar cases are handled with the required judicial deference. Compliance with the High Court’s decision to return the aircraft would demonstrate a commitment to upholding lawful agreements and the judicious use of insolvency frameworks #aviation #india #gofirst #lessor #airline

Learning from the past experience of multiple airlines going into prolonged insolvency resolution process, #SpiceJet has opted for resolving its legal disputes with creditors and lessors through Alternate Dispute Resolution (#ADR) mechanism. SpiceJet move towards settling its dues via out of court settlement and negotiation, has not only saved the Company from expensive and time-consuming resolution process, but has also aided in preservation of value and assets of the Company. SpiceJet has settled its $29.9 million dispute with aircraft lessor Celestial Aviation Services, casting off a major hurdle as the airline seeks to strengthen its footing in aviation sector. #Aviation #SpiceJet #ADR #Resolution #Airline

SpiceJet faced two new insolvency petitions at the National Company Law Tribunal (NCLT) from Sabarmati Aviation and JetAir 17. The NCLT issued a notice to SpiceJet regarding Sabarmati's plea and requested further documentation from JetAir 17, who claims SpiceJet owes them USD 27 million in lease payments. SpiceJet contests JetAir 17's claims, stating they lack a direct lease agreement. Read more at: https://lnkd.in/gs8fUVpB #ETLegalWorld

#Publications S&R Insights: From Rescue to Ruin - The Supreme Court’s Judgment in Jet Airways and the Future of Airline Insolvencies In a recent judgment, the Supreme Court of India ordered the liquidation of Jet Airways (India) Limited, bringing an end to the five-year-long saga of efforts to revive the distressed airline. Two years after the airline entered the corporate insolvency resolution process, the National Company Law Tribunal, in June 2021, approved the resolution plan submitted by the Jalan Fritsch Consortium, the successful resolution applicant. However, various challenges arose with implementation of the resolution plan, which led the successful resolution applicant to seek multiple extensions and concessions from the adjudicating authority. Finally, the Supreme Court set aside the March 2024 order of the National Company Law Appellate Tribunal and used its inherent powers under Article 142 of the Constitution to order the airline’s liquidation. The Supreme Court’s judgment is significant as it underscores the importance of implementing resolution plans within agreed upon timelines and identifies certain gaps and shortcomings in the Insolvency and Bankruptcy Code, 2016 as far as implementation of resolution plans are concerned. This note analyzes the judgment to discuss its implications for the implementation of resolution plans as well as specific challenges in the context of insolvencies in the aviation industry. Authored by Aparna Ravi and K J Chendhil Kumar. #aviation #insolvency #IBC #regulatory #india #lawyers

On 3 October 2023, MCA issued a notification that exempted arrangements relating to aircraft, aircraft engines, airframes and helicopters from the moratorium under Section 14(1) of the IBC,2016 ("IBC"). The notification comes in the aftermath of the insolvency proceedings of #GoFirst, wherein aircraft lessors stated that the moratorium provisions under IBC are inconsistent with their rights under the Cape Town Convention. However, the said notification didn't explicitly specify whether the same would be effective prospectively/retrospectively. Accordingly, NCLT has recently sought clarification from MCA on whether the exemption from the moratorium granted to all transactions related to aircraft and their engines under the IBC,2016 is retrospective/prospective in nature. #IBC #Aviation #GoFirst #MCA #Lessors #InCorp Incorp Restructuring Services LLP (IPE) InCorp India

✈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

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

🖋️ 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

Jet Airways' Liquidation Ordered by Supreme Court Today, the Supreme Court of India has ordered the liquidation of Jet Airways, marking a significant moment in the aviation industry. This decision comes after the Jalan-Kalrock Consortium failed to fulfill its resolution plan, which was intended to revive the once-prominent airline. The court found that the previous approval by the National Company Law Appellate Tribunal (NCLAT) disregarded earlier Supreme Court rulings, leading to this unfortunate outcome. Jet Airways, which suspended operations in 2019 due to financial difficulties, has been embroiled in legal battles for over five years. The court’s ruling emphasizes the need for accountability in the insolvency process and serves as a reminder of the challenges faced by companies in distress. As we reflect on this development, it’s crucial to consider the broader implications for the aviation sector and the lessons learned from this case. The journey of Jet Airways is a poignant reminder of the complexities of corporate restructuring and the importance of robust financial governance. #Aviation #JetAirways #SupremeCourt #Insolvency #CorporateGovernance #LessonsLearned