Summary
Pending the NCLAT’s decision on implementation of Jet Airways’ approved resolution plan, the Court held that the resolution applicant could not substitute adjustment of its performance bank guarantee for the promised final cash tranche. It ordered payment of ₹150 crore by 31 January 2024, continued the guarantee pending appeal, and left plan compliance to the NCLAT.
Issues
- Whether the resolution applicant could adjust its performance bank guarantee against the final ₹150 crore tranche under the lenders’ conditional offer while the implementation dispute remained pending before the NCLAT.
- What interim directions were required pending the NCLAT’s decision on compliance with the resolution plan and the lenders’ conditions.
Held
- The lenders’ offer not to contest extension, exclusion, or conditions-precedent issues was conditional on the resolution applicant satisfying the stated requirements, including infusing ₹350 crore. Having accepted that offer, the applicant had to comply with it as made; the ₹150 crore performance bank guarantee could not be adjusted in place of the remaining cash tranche at the interlocutory stage. (¶¶ 19, 20, 21, 22)
- The resolution applicant was directed to deposit the remaining ₹150 crore into SBI’s designated account by 31 January 2024. The ₹150 crore performance bank guarantee had to remain in force pending final disposal of the NCLAT appeal and abide by its outcome. (¶¶ 25, 26)
- Whether the resolution applicant complied with the resolution plan and the conditions in SBI’s affidavit was left for the NCLAT to decide. The Court expressed no final view on the merits of that pending appeal. (¶¶ 19, 25, 27)
Result
The appeals were disposed of; the NCLAT’s order was modified to substitute the Court’s payment and guarantee directions for permission to adjust the last tranche against the performance bank guarantee. The NCLAT was requested to endeavour to dispose of the appeal by the end of March 2024.