SC sets aside NCLAT nod to Byju’s settlement with BCCI
Observing that the NCLAT did not apply its mind while delivering the impugned decision, the apex court directed a fresh adjudication on the insolvency proceedings.
The National Company Law Appellate Tribunal (NCLAT) on Monday gave more time to the winning bidder Jalan-Kalrock Consortium to pay Rs 350 crore to the lenders of the bankrupt Jet Airways, which stopped flying in April 2019 and underwent an insolvency resolution process.
The tribunal extended the timeline till September 30 and an adjustment of Rs 150 crore from the Performance Bank Guarantee (PBG) towards the payment of Rs 350 crore, on consortium’s request.
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The consortium submitted before a three-member bench an undertaking committing to pay Rs 100 crore by August 31 and another Rs 100 crore by September 30.
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For the remaining Rs 150 crore, the consortium requested the appellate tribunal to encash the PBG submitted for that purpose.
Earlier, the consortium was to pay Rs 350 crore to the lenders by August 31 but sought an extension for the payment.
The consortium, in its plea, had asked for a 90-day extension to pay Rs 350 crore to the creditors of the airline. The appellate tribunal pronounced the order after having it reserved on August 21. It had asked the Consortium to confirm to the court that the PBG could serve as security for the deposit amount of Rs 350 crore.
Counsel for the consortium had said that the approved resolution plan mentions the possibility of adjusting the PBG. Lenders, in their reply, pleaded that the consortium is not just seeking an extension, but rather attempting to modify the approved resolution plan.
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