Jet Airways Liquidator Moves NCLAT To Recover ₹873 Crore From Boeing Over Undelivered Aircraft
· Free Press Journal
Jet Airways' liquidator has moved the National Company Law Appellate Tribunal (NCLAT), challenging the dismissal of his application to recover $92.12 million (approximately ₹873 crore) paid to Boeing for aircraft that were never delivered.
According to a report by Business Standard, a Bench comprising Judicial Member Mohammad Faiz Alam Khan and Technical Member Naresh Salecha issued notice to Boeing on Tuesday, observing that the appeal warranted consideration.
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Boeing's counsel accepted the notice and received two weeks to respond. The liquidator has another week to file a rejoinder, with the next hearing scheduled for the first week of December.
Mumbai NCLT Rejects Jet Airways Liquidator’s Plea For Refund Of $92.12 Million Boeing AdvanceThe appeal challenges the Sept 11 order of the National Company Law Tribunal (NCLT), which rejected liquidator Satish Kumar Gupta's recovery application.
The dispute involves two agreements signed in 2013 for Boeing 737-8 and 787-9 aircraft.
Jet Airways made advance and pre-delivery payments but subsequently failed to meet its financial obligations.
Boeing suspended the agreements in May 2019 and terminated them in December 2020.
The liquidator argued that the advances formed part of the airline's liquidation estate and should be returned.
He alleged that Boeing retained the payments while separately submitting a claim for the outstanding contractual balance during insolvency proceedings.
The appeal seeks recovery of the advances without interim relief.
Boeing Cites Set-Off Rights As NCLT Declines Jurisdiction
Boeing maintained that the payments had already been adjusted against its larger admitted claim.
The manufacturer cited Regulation 20 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, which permits set-off of mutual dues.
The NCLT's Mumbai Bench, comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, declined to resolve the dispute under Section 60(5) of the Insolvency and Bankruptcy Code.
It held that examining contractual rights required the purchase agreements, supporting evidence and a full trial.
Neither party submitted the agreements, citing confidentiality.
The tribunal dismissed the application without deciding whether Boeing could legally retain or adjust the advances.
The appellate proceedings will now examine the liquidator's challenge to that decision.