Weekly Browser A-
The
NCLT
held
that
since
amount
due
to
operational
creditor
from
corporate
debtor^
was
in
respect
of
supply
of
goods,
amount
claimed
by
operational
creditor^
from
corporate
debtor
would
be
operational
debt.
The
tribunal
held
that^
the
execution
of
settlement
agreement
itself
confirmed
that
operational
debt^
was
due
and
payable.
And
therefore,
the
instant
CIRP
application
filed
by^
operational
creditor
being
complete
in
all
respect
was
to
be
admitted.NCLT admits SBI’s Insolvency plea against Jet Airways as it had
huge outstanding debts
State Bank of India v. Jet Airways (India) Ltd. [2019] 106 taxmann.
com 267 (NCLT - Mum.)
The
NCLT
has
admitted
the
Insolvency
petition
filed
by
the
financial
creditor-^
State
Bank
of
India
under
section
7
of
the
Insolvency
and
Bankruptcy
Code,
2016
for
initiation
of
Corporate
Insolvency
Resolution
Process
(CIRP)
against
renowned^
airline,
Jet
Airways.
Along
with
the
SBI,
other
two
petitions
under
the
Code,
2016
were
filed
claiming
to^
be
Operational
Creditors
of
the
corporate
debtor
Jet
Airways.
All-in-all,
total
amount^
of
debt
granted
to
the
Corporate
Debtor
by
the
petitioner
- SBI
alone
stands^
at
`
1795. 21
Cr.
There
were
several
other
financial
creditors
who
have
also^
granted
a
loan
to
the
Corporate
Debtor.
Therefore,
the
NCLT
accepted
the^
insolvency
plea
and
directed
the
insolvency
professional
to
expedite
the
CIRP^
of
the
Corporate
Debtor
without
delay
of
even
a
single
day.
The
panel
of
Judges
at
the
NCLT
also
directed
the
IRP/RP
to
make
every
possible^
effort
to
complete
the
CIRP
at
the
earliest
possible
time
as
the
matter
being^
of
National
Importance
and
the
Corporate
Debtor
has
been
one
of
the
largest^
private
sector
airlines,
the
huge
number
of
workforce
of
more
than
20 , 000
employees,
large
number
of
flights,
having
international
operations
and
the^
important
sector
in
which
the
Corporate
Debtor
is
operating,
serving
both
Domestic^
and
International
markets.Angle of cross border insolvency
During
the
proceeding,
the
Tribunal
was
apprised
that
insolvency
proceedings
against^
the
Corporate
Debtor
have
already
been
initiated
in
the
NOORD-HOL
LAND -
DISTRICT
Court.
The
Administrator,
in
the
Bankruptcy
of
Jet
Airways
(India)
Ltd.
in
Noord
Holland^
District
Court
filed
a
written
submission
before
the
Tribunal
in
the
capacity^
of
Intervenor
stating
that
order
for
initiation
of
insolvency
proceed
ing -
have
already
been
passed
against
the
Corporate
debtor
one
month
ago
in^
other
jurisdiction
and
it
will
create
a
peculiar
situation
of
two
insolvency
proceedings^
running
in
parallel
against
same
Corporate
Debtor.
The
intervenor
further^
stated
that
The
Administrator
appointed
by
a
competent
court
in
the
Netherlands^
and
Interim
Resolution
Professional
appointed
by
the
Adjudicating