Cross-Border Insolvency Protocol Approved for Jet Airways: Dutch Trustee's Role Defined in CoC Meetings

The tribunal upheld the establishment of a Cross Border Insolvency Protocol between the Resolution Professional (RP) of Jet Airways (India) Limited and the Dutch Trustee, emphasizing international cooperation. The Dutch Trustee was granted the right to participate in Committee of Creditors (CoC) meetings as an observer without voting rights. The tribunal clarified the Dutch Court's jurisdiction in the insolvency resolution process, allowing the Dutch Trustee to collaborate with the RP in India. The joint Corporate Insolvency Resolution Process will continue as per the Insolvency and Bankruptcy Code, with the tribunal's directions ensuring smooth proceedings.

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Issues Involved:
1. Cross Border Insolvency Protocol Agreement
2. Participation of the Dutch Trustee in the Committee of Creditors (CoC) meetings
3. Jurisdiction of the Dutch Court in the corporate insolvency resolution process of Jet Airways (India) Limited
4. Continuation of the joint Corporate Insolvency Resolution Process (CIRP)

Issue-wise Detailed Analysis:

1. Cross Border Insolvency Protocol Agreement:
The judgment addresses the establishment of a "Cross Border Insolvency Protocol" between the Resolution Professional (RP) of Jet Airways (India) Limited and the Dutch Trustee. The protocol is aimed at facilitating cooperation between parallel insolvency proceedings in India and the Netherlands. The protocol outlines the construction, purpose, aims, effectiveness, communication, rights to appear and attend, assets, claims, costs, stays of proceedings, and miscellaneous provisions. The protocol emphasizes the need for international cooperation, coordination of activities, communication, and information sharing to maximize the value of the company's assets for the benefit of all creditors.

2. Participation of the Dutch Trustee in the Committee of Creditors (CoC) meetings:
The primary contention revolved around Clause 6.1.2 of the Cross Border Insolvency Protocol, which concerns the Dutch Trustee's participation in CoC meetings. The RP, influenced by the CoC, suggested that the Dutch Trustee should not be entitled to participate in CoC meetings. Conversely, the Dutch Trustee proposed that they should be allowed to participate as an observer without voting rights. The tribunal resolved this by directing the inclusion of the Dutch Trustee's suggestion, allowing them to participate in CoC meetings as an observer but without voting rights. The tribunal emphasized that the CoC had no role in this matter as the agreement was based on the tribunal's direction.

3. Jurisdiction of the Dutch Court in the corporate insolvency resolution process of Jet Airways (India) Limited:
The tribunal set aside part of the impugned order dated 20th June 2019 by the National Company Law Tribunal (NCLT), Mumbai Bench, which stated that the Dutch Court had no jurisdiction over the corporate insolvency resolution process of Jet Airways (India) Limited. The tribunal clarified that the Dutch Trustee, equivalent to the RP in India, has the right to attend CoC meetings and work in cooperation with the RP of India. The tribunal's direction mandates compliance with the Cross Border Insolvency Protocol, subject to the procedures under the Insolvency and Bankruptcy Code, 2016.

4. Continuation of the joint Corporate Insolvency Resolution Process (CIRP):
The tribunal made it clear that it did not interfere with the order admitting the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the State Bank of India against Jet Airways (India) Limited. The joint Corporate Insolvency Resolution Process will continue in accordance with the Insolvency and Bankruptcy Code, 2016. The appeal was disposed of with the tribunal's observations and directions, ensuring no costs were imposed.

Conclusion:
The judgment underscores the importance of international cooperation in cross-border insolvency cases, ensuring that the Dutch Trustee can participate as an observer in CoC meetings, and reaffirms the jurisdiction and cooperation between the Indian and Dutch courts in the insolvency resolution process of Jet Airways (India) Limited. The joint CIRP will proceed under the established legal framework, with the Cross Border Insolvency Protocol serving as a guiding document for coordination and cooperation between the involved parties.

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