Key Points
Jet Airways creditors on Monday told the Supreme Court that the resolution plan of the consortium of Jalan-Fritsch was unviable and unworkable...
Instead of that, MC is finding fault and taking steps " which does not facilitate the implementation, rather delay the implementation", the bench observed.. "MC lenders instead of threatening to invoke performance bank guarantee, should take steps, which may help implementation of the plan and to achieve the objective of the resolution plan," NCLAT said...
According to the order, when the SRA (Successful Resolution Applicant) is ready to undertake to perform its obligations under the plan, the appellate tribunal said it was of the view that the performance bank guarantee given by cannot be permitted to the invoked by...
"When the NCLT has directed on January 13, 2023 to take steps towards the implementation of the plan and which order was not been stayed by this tribunal on March 3, 2023, the steps ought to have been taken by the MC lenders in furtherance of the implementation," it said.. Further, it said there is no doubt that the performance bank guarantee can be invoked by the MC lenders but the said invocation can only take place when the consortium has failed to implement the plan...
"We direct that MC lenders shall not invoke the performance bank guarantee in the facts of the present case as on date, and for invocation, if any, MC Lenders may take leave of the adjudicating authority," NCLAT bench, comprising Charirman Justice Ashok Bhushan and Member (Technical) Barun Mitra, said.. Further, it said the resolution plan has been approved with the intent and purpose to revive Jet Airways...
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