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🖋️ 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

The Supreme Court of India has ordered the liquidation of Jet Airways, marking the end of a significant chapter in Indian aviation. This decision overturns the National Company Law Appellate Tribunal’s (NCLAT) earlier approval of the airline’s ownership transfer to the Jalan Kalrock Consortium (JKC). Key Points of the Supreme Court’s Decision: • Non-Compliance with Payment Terms: The Court found that JKC failed to fulfill the financial obligations outlined in the approved resolution plan, particularly concerning the payment of ₹350 crore. The NCLAT had permitted the adjustment of this amount against the Performance Bank Guarantee (PBG), a move the Supreme Court deemed in “flagrant disregard” of its January 18, 2024, order. • Invocation of Article 142: Emphasizing the necessity for a timely resolution to prevent further depreciation of the airline’s assets, the Supreme Court invoked its plenary powers under Article 142 of the Constitution to direct the commencement of liquidation proceedings. • Protection of Stakeholders’ Interests: The Court stated that liquidation is in the best interests of the creditors, employees, and other stakeholders, ensuring they receive their rightful dues without further delay. Background: Jet Airways, once a leading airline in India, ceased operations in April 2019 due to severe financial difficulties. In June 2021, the NCLT approved a resolution plan submitted by JKC, aiming to revive the airline. However, prolonged delays and unmet financial commitments led creditors, led by the State Bank of India, to seek liquidation. Implications: The liquidation of Jet Airways signifies the conclusion of efforts to revive the airline through the insolvency resolution process. The National Company Law Tribunal (NCLT) in Mumbai will oversee the liquidation proceedings, focusing on maximizing asset value to satisfy the claims of creditors and employees. This development underscores the critical importance of adhering to financial commitments in resolution plans and the judiciary’s role in upholding the principles of the Insolvency and Bankruptcy Code, 2016. #Jetairways #bankruptcy #NCLAT

Supreme Court Orders Liquidation of Jet Airways After SRA's Repeated Delays: It means no more Jet Airways airline in future. In a recent judgment, the Supreme Court of India ordered the liquidation of Jet Airways, rejecting the revival efforts led by the Successful Resolution Applicant (SRA)/Successful bidder, the consortium of Murari Lal Jalan and Florian Fritsch. This decision underscores the court's commitment to enforcing strict timelines under the Insolvency and Bankruptcy Code (IBC) and addresses concerns about the potential misuse of the judicial process in insolvency proceedings. Facts of the Case: 1)   Jet Airways entered insolvency proceedings in 2019, and a revival plan by the SRA was approved in 2021. The SRA committed to an infusion of funds with specific timelines, including a first tranche of ₹350 crore to be paid within 180 days of the "Effective Date." 2)   Despite multiple extensions granted by NCLT, NCLAT, and even the Supreme Court, the SRA failed to meet the critical payment deadlines 3)   The Supreme Court observed that the SRA’s repeated delays and requests for further time amounted to an abuse of judicial leniency. Judgement: a)   The court noted that prolonged delays by the SRA had already degraded Jet Airways' potential for revival. b)   The court underscored that non-compliance with Resolution Plan terms, especially after multiple extensions, leaves no choice but liquidation, as per Section 33(3) of the IBC. c)   The court’s decision highlights that the judicial process cannot be used as a tool to delay proceedings without consequence. d)   As a direct penalty, the court ordered the forfeiture of the SRA’s initial deposit of Rs. 200 Crore and encashing Performance Bank Guarantee of Rs. 150 Crore. The SRA’s failure to adhere to the Resolution Plan could have long-term reputational effects, potentially influencing its credibility in future. #IBC #InsolvencyLaw #Banking #FinancialInstitutions #CorporateLaw#LegalUpdate, #lawnews, #legaltrends

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

Significant Case Laws in Cross-Border Insolvency. *Jet Airways (India) Ltd.*: Case Details: In the insolvency proceedings of Jet Airways, the NCLT recognized the need for coordination with foreign jurisdictions, as the airline had significant foreign creditors. Impact: Highlighted the importance of communication between domestic and foreign courts in insolvency matters. *Karan Paul v. United Bank of India (2018)*: Case Details: The NCLAT held that the principles of natural justice must be upheld in insolvency proceedings involving foreign creditors. Impact: Set a precedent for treating foreign creditors equitably in domestic insolvency proceedings. *Satyam Computers*: Context: Though not a direct cross-border insolvency case, it involved international implications due to the involvement of foreign investors and regulators. Significance: The case underscored the importance of international cooperation in handling cross-border insolvency. *Tata Steel vs. Bhushan Steel*: Context: Tata Steel's acquisition of Bhushan Steel involved foreign creditors and necessitated interactions with foreign jurisdictions. Significance: Demonstrated the need for an efficient process to handle international claims and the resolution of disputes involving cross-border interests. *International Frameworks* India has been influenced by international conventions such as: UNCITRAL Model Law on Cross-Border Insolvency: While India has not adopted this model law, it serves as a reference for potential legislative reforms. *Future Developments* India is gradually recognizing the importance of a structured approach to cross-border insolvency, which may lead to: Potential amendments to the IBC to include explicit provisions for cross-border insolvency. Greater collaboration with foreign jurisdictions to streamline processes. *Conclusion* Cross-border insolvency in India is an evolving field, and while significant progress has been made, challenges remain. The legal landscape continues to develop as more cases arise and as global standards are considered. Future legislative reforms may provide clearer guidance and frameworks for handling such cases. UNTILL NEXT TIME *HAPPY LAWYERING* #LAW #CROSSBORDERINSOLVENCY #NCLT #INSOLVENCY #LAWYER

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.

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

#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

INDIA TODAY 8TH APRIL 2024 GO FIRST AIRLINE GIVEN EXTENSION FOR RESOULTION PLAN BY NCLT UPTO 3RD JUNE 2024 WHICH DOWN SHUTTER LAST YEAR ON 2ND MAY 2023 The National Company Law Tribunal (NCLT) on Monday approved another 60-day extension to the bankrupt Go First airline to complete its corporate insolvency resolution process (CIRP). The extension will be effective till 3 June, and has been allowed keeping in mind the interest of stakeholders, as per the NCLT. India's insolvency laws mandate completion of a corporate resolution process in 180 days, extendable by another 90 days. However, it must be completed in no more than 330 days in total. A previous extension, from 4 February to 4 April, exhausted the 330-day deadline to complete the resolution process. However, under exceptional circumstances, the NCLT agreed to give Go First another 60 days, as the resolution plans were nearing completion. https://lnkd.in/grBZFnJ3

Exercising the powers under Article 142, today the Hon'ble Supreme Court has ordered liquidation of Jet Airways in view of failure of the SRA in implementing the Resolution Plan. The decision was made in view of the fact that five years have already elapsed since the approval of the Resolution Plan and yet, there being no progress in its implementation. A few crucial points noted by the court were: i. Unwarranted delay in implementation of the Resolution Plan leads to diminishing value of the assets of the Corporate Debtor. Strict timelines and timely resolution of the Corporate Debtor is the essence of the Code. ii. The primary objective of the resolution process is to maximize the value of assets and revival of the Corporate Debtor. Although liquidation should be the last resort, delay in arriving at the decision for liquidation must not hamper the realizations that can be made through liquidation. iii. The discretionary power of the NCLT and NCLAT in extending the timelines of the resolution plan should not be exercised in a machinical way, rather should be exercised keeping in mind the consequences of such extensions on the financial health of the Corporate Debtor. iv. While one of the reasons supporting the grant of extension would be to ensure the successful revival of the Corporate Debtor, multiple extensions may seriously hamper the economic feasibility of the Resolution Plan and may also lead to an increase in the debts of the corporate debtor. Interestingly, the Hon’ble Supreme Court has also highlighted the issues of shortage of Members in NCLT and NCLAT and lack of infrastructure therein, which often leads to operational inefficiencies. Highlighting that strict mandates for the tribunals during their regular working hours, the Hon'ble Supreme Court has observed that the Parliament and IBBI must look in the said issues. The litigation of Jet Airways was an eye opener litigation in the purview of Insolvency and Bankruptcy. #insolvency #aviation #supremecourt