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Home / Business / PNB urges NCLT to quash Jet Airways rescue plan

PNB urges NCLT to quash Jet Airways rescue plan

A consortium of London-based Kalrock Capital and a UAE-based businessman last year agreed to pump in Rs 1,000 crore as working capital and give funds to creditors
Representational image.

Reuters   |   New Delhi   |   Published 03.09.21, 03:10 AM

Punjab National Bank on Thursday urged a tribunal to quash the rescue plan for defunct debt-laden Jet Airways, alleging irregularities in it, a move that risks delaying the return of the airline grounded two years ago.

A consortium of London-based Kalrock Capital and a UAE-based businessman last year agreed to pump in Rs 1,000 crore as working capital and give funds to creditors of Jet, which was hit hard because of  piling up debt in 2019.

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PNB, the court-appointed official in charge of Jet’s revival, Ashish Chhawchharia, and a spokesperson for the consortium investing funds into the collapsed airline did not respond to requests for comment.

PNB, the country’s second-largest state lender, argues that Jet’s court-appointed rescue official had initially accepted its claim of nearly Rs 1,000 crore ($137 million) from the airline’s backers, but then reduced it by Rs 200 crore, according to its tribunal filing seen by Reuters.

At the National Company Law Appellate Tribunal, PNB argued that a reduction of 

the amount was arbitrary and illegal. On Thursday, the tribunal agreed to hear PNB’s case, Additional Solicitor General of India, Aman Lekhi, who argued for the bank, told Reuters. The case will be heard on September 21.

“How PNB has been treated is wrong — both substantively and procedurally," Lekhi said.

PNB Housing 

PNB Housing Finance on Thursday said capital markets regulator Sebi has approached the Supreme Court against the Securities Appellate Tribunal’s order in the matter related to the company’s Rs 4,000 crore equity capital raise plan. 

Pronouncing its order on August 9, the two-member bench of the Securities Appellate Tribunal (SAT) gave a split verdict, saying there was difference of opinion between the members of the bench. 

SAT directed that its interim order of June 21, 2021 will continue till further orders, restraining PNB Housing Finance from disclosing the voting results by the shareholders on the fund raise plan.



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