The National Company Law Tribunal (NCLT) temporarily restrained Mumbai International Airport from removing Jet Airways’ assets from its premises.
The Application is filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (Code), in relation to the strategic assets of the Applicant (Jet Airways) which are placed at the Respondent’s Hangar and other places at airport approximately admeasuring 11,850 sq. mtr., contending that the Applicant has ceased its operation as commercial Airline since i.e. prior to commencement of Corporate Insolvency Resolution Process (CIRP) and Respondent, requested the Applicant to vacate the facility made available as aforesaid which is in use of the Applicant contending that permission of subject premises granted to the Applicant for its use stands revoked.
Senior Advocate Vikram Nankani, appearing for the respondent, challenged the maintainability of the Application by referring to its own case contending that since 17.04.2019, Applicant Airline has ceased its operation as commercial Airline.
He contended that Respondent, rightly made request to the Applicant to vacate the premises and Hangar made available to it and as such the permission enforced as granted, to the Applicant stands revoked.
Advocate Rohan Rajadhyaksha, appearing for the applicant, prayed for grant of interim relief by issuing directions to Respondent to allow the Applicant including his Representatives, Workmen and Nominees to have access to the MIAL premises and Hanger as the same is necessary for preserving the assets.
The two member bench of Justice P. N. Deshmukh and Kapal Kumar Vohra noted that the Resolution Mechanism is at an advanced stage and since admittedly the premises were made available to the Applicant prior to 17.04.2019 when it ceased its operation as commercial Airlines and it is the specific case of the Applicant that the aircrafts, engines, and auxiliary power units etc are lying at MIAL Airport which require maintenance at regular intervals of seven, fifteen, thirty, ninety and three sixty-five days, for instance regular checkups of tyre pressures for aircrafts, battery recharges and engine runs.
The tribunal said that despite cessation of 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 for the maintenance of aircrafts and engines placed at MIAL Airport including Hangar.
The tribunal held that the Applicant has made out a case for grant for interim relief in its favor and restrained the respondent from removing Applicant’s assets from its premises including MIAL Hangar and not to deny access to the Applicant’s Representatives, Workmen, Nominees, etc. till the adjourned date.
Case title: State Bank of India v/s Jet Airways
Citation: IA 292/2022 IN CP (IB) 2205/MB/2019