New Delhi: Punjab National Bank (PNB) on Thursday urged the National Company Law Appellate Tribunal to quash Jet Airways’ rescue plan. The state-owned lender has alleged irregularities in the defunct debt-laden carrier’s account as the reason why the rescue plan should be halted for now.
The PNB’s request could delay the return of Jet Airways which was grounded two years ago. Notably, last month, a consortium of London-based Kalrock Capital and a UAE-based businessman had agreed to invest about Rs 1000 crore in Jet Airways as capital to bail out the carrier from its debt that started building up in 2019.
PNB is currently arguing that the “Jet’s court-appointed rescue official had initially accepted its claim of nearly 10 billion rupees ($137 million) from the airline’s backers, but then reduced it by 2 billion rupees”, according to its tribunal filing quoted in a report by Reuters.
PNB argued in front of the NCLAT that the reduction in the amount was arbitrary and illegal. Additional Solicitor General of India Aman Lekhi said that the tribunal has agreed to hear the case. The next date of hearing has been set for September 2021. “How PNB has been treated is wrong – both substantively and procedurally,” Lekhi said.
Faced with increasing competition from low-cost rivals, Jet Airways grounded all flights in April 2019 due to rising debts. Since then the carrier has been trying to make a recovery. Also Read: Sensex crosses 58K, Nifty tops 17,300: SBI, HCL Tech in focus in early trade
Last year, the financial creditors of Jet Airways, including PNB, had approved the resolution plan