Mumbai International Airport Limited (MIAL), owned by the Adani group, has approached the National Company Law Tribunal (NCLT) in Mumbai seeking clarification on the validity of selling Jet Airways’ three grounded aircraft to buyer Ace Aviation.
The NCLT has agreed to hear MIAL’s application and has scheduled the hearing for 14 January to determine whether the sale can proceed post-liquidation. Additionally, the NCLT has directed the involved parties to formalize the necessary documentation pertaining to the sale.
MIAL contends that following the Supreme Court’s judgement, there is uncertainty regarding the survival of the sale agreement for the aircraft as no resolution exists, and has urged the NCLT to provide clarity on this matter.
However, the lenders argue that the sale of the aircraft is independent of the resolution plan and remains valid. They have asked the NCLT to direct MIAL to grant them access to the parked aircraft.
In response, Ace Aviation has informed the court that the sale is progressing, with a letter of possession already issued.
The company asserts that MIAL has no grounds to obstruct the sale, as the proceeds will be distributed to creditors according to the established waterfall mechanism, ensuring MIAL receives its share.
On 7 October, the NCLT ruled that MIAL could not enforce its lien over the three grounded aircraft, as the sale process was being conducted under an approved resolution plan involving the successful bidder, the Jalan-Kalrock Consortium (JKC).
However, circumstances changed when the Supreme Court on 7 November, exercising its special powers under Article 142 of the Constitution, ordered Jet Airways into liquidation after finding that JKC failed to comply with the conditions of the resolution plan, including the payment of airport dues.
Following this, MIAL approached the National Company Law Appellate Tribunal (NCLAT) to seek clarity on its dues. On December 4, the NCLAT directed the NCLT Mumbai to hear MIAL’s plea, leading to the current deliberations.
The three aircraft, parked at Mumbai international airport since 2018, have been embroiled in a legal dispute over unpaid dues. MIAL has claimed substantial amounts in parking fees and related charges.
In 2022, Ace Aviation secured the bid to purchase these aircraft for ₹400 crore. However, the sale was halted in November 2022 due to a deadlock within the monitoring committee.
While the airline’s lenders supported the sale, the consortium and former employees opposed it, citing liens over the aircraft for unpaid gratuity and provident fund dues.
Ace Aviation subsequently approached the NCLT to resolve the impasse. In October 2023, the NCLT directed the committee to restart and finalize the sale process, recognizing Ace Aviation as an eligible bidder. In 2024, the Supreme Court instructed the monitoring committee to complete the sale.
However, MIAL objected, asserting a lien over the aircraft due to outstanding dues, leading to the NCLT’s 7 October order concerning the sale.
According to the resolution plan, airport dues and parking charges, initially estimated at ₹475 crore, have since escalated to approximately ₹1,000 crore.
Source: Mint