TaxTMI 
TaxTMI 
2026 (8) TMI 1525
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....6 passed by the National Company Law Tribunal, Mumbai (Adjudicating Authority), in IA No. 1604 of 2026 in CP (IB) No. 2205/MB/2019, whereby the application preferred by the appellants has been dismissed. 2. The facts as are reflected from the appeal filed by the appellants are in terms that, vide order dated 20.06.2019 passed by the Ld. Adjudicating Authority under Section 7 of the Insolvency and Bankruptcy Code, 2016, the insolvency process was initiated against Jet Airways (India) Limited. The Interim Resolution Professional was appointed under Section 16 of the Code, and thereafter was confirmed as RP under Section 22 of the Code. 3. It is further stated in the appeal that during the CIRP period, the CD had owned five aircrafts, including a Boeing 777 aircraft, constituting valuable assets of the corporate debtor. During the insolvency process, the claims of financial creditors, operational creditors and employees were duly collated and admitted, and the resolution plans were invited in accordance with the provisions of the code. The Adjudicating Authority, by order dated 22/6/2021, approved the resolution plan submitted by the Jalan Fritsch Consortium in respect of Jet Ai....
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.... declare the sale of the aircraft and aircraft assets as vitiated and the same has been dismissed by the Ld. Adjudicating Authority, by passing the impugned order. 9. We have heard learned counsel for the Appellant and learned counsels for the Respondents No. 1, Respondents No. 4, 5, and 6, and perused the record. 10. Learned counsel for the appellants submits that the appellants are the ex-employees of the CD, and as their payment is required to be determined under Section 53 of the Code, they have an interest in the impugned sale. Therefore, they have locus to file an application before the learned Adjudicating Authority as well as the appeal before this Appellate Tribunal. 11. It is further submitted that the Air craft assets have been sold at lower value which was determined in the year 2022, while the value of the aircraft assets was much higher than the value at which these aircraft have been sold. Thus, the aircrafts have been sold by doing undervaluation, causing substantial prejudice to the liquidation estate of the CD and also to the other stakeholders, including appellants. 12. It is further submitted that even if the prices which were determined for the sale....
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....e appellant had moved the application before the Ld. Adjudicating Authority with the delay of more than fifteen months. The challenge before the learned adjudicating authority and filing of appeal before this appellate tribunal is nothing but an attempt to frustrate the sale process and the same is not maintainable, as only some apprehensions have been shown by the appellant. 17. It is further submitted that the Ld. Adjudicating Authority, by its order dated 17/10/2023, directed that the process of sale of the aircraft be resumed and completed and this order was upheld by this Appellate Tribunal by passing order dated 22/12/2023 in Company Appeal (AT) (Ins) No. 1517 of 2023 and Company Appeal (AT) (Ins) No. 1595 of 2023. Thereafter, Jet Airways was admitted into liquidation by order dated 7/11/2024 passed by the Hon'ble Supreme Court, following which the Ld. Adjudicating Authority passed an order on 28/12/2024 appointing Respondent No. 1 as the Liquidator of the C D. 18. It is further submitted that vide order dated 27/11/2024, the Ld. Adjudicating Authority recorded the information given by the CoC that they have sorted out the issues with the applicant and the applicant can....
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....porate debtor, should only have concern about their dues. This Appellate Tribunal, in various cases, has held that provident fund and gratuity dues are not part of the liquidation estate and the same ought to be dispersed. Therefore, the apprehension of the appellants appears to be without any basis, and they do not have any locus so far as the filing of this appeal is concerned. Thus, the appeal is liable to be dismissed. 22. Learned Counsel for the Respondents No. 4-6 submitted that during the resolution plan implementation stage, letters of intent were issued in favour of Respondent No. 4-6 for the proposed sale of three Boeing 777-300ER on 12/10/2022, however, the said sale was kept in abeyance by the Monitoring Committee. In this regard, Respondent No. 4-6 filed IA 3747 of 2022 before the Ld. Adjudicating Authority, seeking expeditious sale of the aircraft. The Ld. Adjudicating Authority, by its order dated 17/10/2023, allowed the IA and directed the sale process to be completed expeditiously. Hon'ble Supreme Court, by its judgment dated 7-11-2024, directed liquidation of the CD. In pursuance Ld. Adjudicating Authority's vide order dated 26-11-2024 directed commence....
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....djudicating Authority and the Hon'ble Supreme Court during the CIRP. Further, upon liquidation of Jet Airways on 26/11/2024, the SCC, in its meeting dated 16/12/2024, has approved the sale. Subsequently, the Adjudicating Authority passed many orders, including the orders dated 7/8/2025, 17/9/2025, 18/8/2025, and these orders would demonstrate that the sale of the aircraft to the Ace Aviation Entities was not a unilateral or arbitrary act of the liquidator, but was a process that was subjected to judicial scrutiny at every stage, with the Adjudicating Authority actively facilitating and supervising the completion of the sale. 28. It is also submitted that the allegations pertaining to the undervaluation of the sold aircraft and conflict of interest are without any substance. The sale price of the aircraft was determined pursuant to a competitive process conducted during the CIRP monitoring committee phase, which was duly approved by the Ld. Adjudicating Authority on 17/10/2023 which was also affirmed by the Hon'ble Supreme Court on 07/03/2024. Therefore, the sale prices now cannot be questioned by the appellant, who had no participation/locus in the sale process, and their dues a....
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.... the Monitoring Committee due to some reasons and this Tribunal, vide order dated 17 October 2023, directed that the sale process be completed. The said order was challenged in appeal, however, the same was upheld by Hon'ble NCLAT vide its order dated 22nd December, 2023 as well as Hon'ble Supreme Court vide its order dated 7th March, 2024. In the intervening period, the Corporate Debtor was admitted to liquidation process pursuant to order dated 7.11.2024 passed by Hon'ble Supreme Court on account of failure on part of SRA to implement the approved Resolution Plan. 4. It is further noted, after confirmation of the order dated 17 October 2023 by Hon'ble Supreme Court on 7th March, 2024, the further process to conclude the sale of these aircrafts was carried forward, and in terms of the approval Resolution Plan these three aircrafts were considered to be not affecting the going concern status of the Corporate Debtor. 5. It is further noted that the during the process of agreement on definitive terms of sale agreement between the buyer and the lender, the Corporate Debtor was admitted into liquidation vide order dated 26.11.2024 passed by this Tribun....
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....e auction sale of 3 aircraft owned by the CD, which were parked at Mumbai Airport. The auction sale was to be conducted by the monitoring committee of the CD. Pursuant to this, on 12-10-2022, ACE received the letter of intent. If the LOI is read with ASPD, it would emerge that the sale would be concluded by 16-12-2022. Thereafter, the ACE deposited USD 5.6 million as earnest money towards acquisition of the aircraft. However, the sale was kept in abeyance by the monitoring committee due to some reasons, and the Ld. Adjudicating Authority's order dated 17-10-2023 directed that the sale process to be completed. 34. It is also reflected that the said order of the Ld. Adjudicating Authority was challenged in appeal before this appellate tribunal and vide order dated 22/12/2023 passed by this Appellate Tribunal in Company Appeal (Insolvency) No. 1517 of 2023 and Company Appeal (Insolvency) No. 1595 of 2023 the order of Ld. Adjudicating Authority was upheld and on an appeal preferred before the Hon'ble Supreme Court vide order dated 07/03/2024 order of the Ld. Adjudicating Authority and of this appellate tribunal was not intervened and the appeal was dismissed. 35. We further n....
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....A No. 718 of 2025, which was filed by the Jet Aircraft Maintenance Engineers Welfare Association with regard to grant of various prayers, was disposed of. The relief which was claimed in this application filed by the Jet Aircraft Maintenance Engineers Welfare Institution was with regard to: • Restraint the Respondent No. 5 from asserting or claiming any lien over any amount received by Respondent No. 6 in the event of sale of the aircraft of the CD or of any other assets belonging to the CD. • The amount received by the liquidator will be distributed strictly in accordance with the waterfall mechanism and not to permit the sale of the aircraft to Respondent No. 1. • In the event the liquidator fails to sell the corporate debtor as a going concern, he be directed to dispose of the aircraft in the same manner as all the other assets of the CD. 38. After discussing at length, the learned Adjudicating Authority opined that there is no bar in the provisions of the Code to disentitle the liquidator to continue the process of sale of assets of the CD as initiated by the RP prior to commencement of liquidation. Regulation 32 of the liquidation Proc....