MIAL appeals to NCLT seeking clarification on sale of aircraft by Jet Airways to Ace Aviation

New Delhi: Adani Group-owned Mumbai International Airport Limited (MIAL) has sought clarification from the National Company Law Tribunal (NCLT), Mumbai, on the sale of three grounded aircraft of Jet Airways to buyer Ace Aviation effectiveness.

NCLT has agreed to hear MIAL’s application and has scheduled a hearing for January 14 to determine whether the sale can go ahead after liquidation. Further, the NCLT has directed the parties concerned to formalize the necessary documents related to the sale.

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MIAL argued that in the absence of a resolution based on the Supreme Court judgment, there is uncertainty over the survival of the aircraft sale agreement and urged NCLT to clarify the matter.

However, the lenders argue that the sale of the aircraft is independent of the resolution plan and remains valid. They have requested NCLT to direct MIAL to allow them access to the parked aircraft.

In response, Ace Aviation notified the court that a sale was in progress and that a letter of title had been issued.

The company claimed that MIAL had no reason to block the sale as the proceeds would be distributed to creditors under an established waterfall mechanism ensuring that MIAL gets its share.

On October 7, the NCLT ruled that MIAL could not enforce its lien on the three grounded aircraft as the sale process was under an approved resolution plan involving the successful bidder, Jalan-Kalrock Consortium (JKC).

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However, the situation changed and the Supreme Court on November 7, in exercise of its special powers under Article 142 of the Constitution, ordered Jet Airways to liquidate after finding that JKC failed to comply with the conditions of the resolution plan, including payment of airport fees.

Thereafter, MIAL sought clarification on its dues from the National Company Law Appellate Tribunal (NCLAT). On December 4, NCLAT directed NCLT Mumbai to hear MIAL’s plea, leading to the current deliberations.

The three aircraft, which have been parked at the Mumbai International Airport since 2018, are embroiled in a legal dispute over unpaid dues. MIAL has filed a huge claim for parking charges and related charges.

In 2022, Ace Aviation won the bid to purchase the aircraft $4 billion rupees. However, the sale was halted in November 2022 due to a deadlock within the oversight committee.

While the airline’s lenders supported the sale, the consortium and former employees objected, citing liens on the aircraft for unpaid gratuity and provident fund dues.

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Ace Aviation then contacted NCLT to resolve the impasse. In October 2023, NCLT directed the committee to re-launch and complete the sale process and recognize Ace Aviation as a qualified bidder. In 2024, the Supreme Court directed the Monitoring Board to complete the sale.

However, MIAL objected, claiming that it had a lien on the aircraft for non-payment of money, leading to the NCLT’s order regarding the sale on October 7.

According to the solution, airport fees and parking fees are initially expected to be $475 crore, which has since escalated to approx. $10 billion rupees.