NCLT order to Mumbai Airport against removal of Jet Airways assets
NCLT order to Mumbai Airport against removal of Jet Airways assets
The airline had sought the tribunal's intervention to be allowed access to the airfield
The Mumbai Bench of the National Company Law Tribunal (NCLT) has temporarily restrained the Mumbai International Airport Limited (MIAL) from removing the assets of Jet Airways from its premises. It has further directed it to allow the airline's representatives, workmen and nominees, access to the airport premises.
A Bench of judicial member Justice (retired) PN Deshmukh and technical member KK Vohra found that if the airline was not allowed to have access to the airport, it would have difficulty in maintaining aircraft, engines, and auxiliary power units.
The NCLT agreed with the applicant airline that maintenance activities were necessary to prevent deterioration in the value of the assets, as they needed to be preserved for successful implementation of the resolution plan under the Insolvency and Bankruptcy Code (IBC).
The bench observed, "One of the principal objectives of the Code is to provide for the revival of the CD (Corporate Debtor) and every attempt ought to be made to revive the CD and liquidation being the last resort."
"Despite the cessation of the airline operations of the CD, the erstwhile Resolution Professional had, with the approval of the Committee of Creditors, retained a team of personnel to look into the maintenance of aircraft and engines placed at MIAL Airport including the hangar." It added.
The defunct airline company had filed a plea with the tribunal after MIAL requested it to vacate the airport premises in June 2019.
The respondent had contended that since the airline's operations ceased in April the same year, the permission granted to it for the use of its premises stood revoked. It pointed out that the request for vacating the premises was made before the Corporate Insolvency Resolution Process (ICRP) was initiated against the company.
But, the airline, through advocate Rohan Rajadhyaksha, prayed for directions to be issued to the respondent to allow the airline's representatives unhindered access to the airport premises for the purpose of maintenance of assets.
Representing MIAL, senior advocate Vikram Nankani challenged the application on the basis that since the applicant airline had ceased commercial operations; the request was rightly made to the applicant to vacate the premises and hangars.
