Mumbai NCLT Rejects Jet Airways Liquidator's Plea for Boeing Advance Refund
The Mumbai National Company Law Tribunal (NCLT) has dismissed an application filed by Jet Airways' liquidator, Satish Kumar Gupta, seeking a refund of $92.129 million paid to Boeing for undelivered aircraft.
The liquidator had argued that Boeing retained the advance payments without establishing any contractual or legal basis for doing so. However, Boeing disputed the claim and contended that the advance payments were already adjusted against its claim against Jet Airways.
According to the order, Jet Airways and Boeing entered into purchase agreements in 2013 for Boeing aircraft. The airline deposited $92.129 million with Boeing as advance/pre-delivery payments, but was unable to make further payments. Boeing subsequently issued a notice suspending performance under the agreements in May 2019.
The NCLT held that the dispute between Jet Airways and Boeing arose primarily from their contractual agreements and involved disputed questions of fact and law that could not be adjudicated in the NCLT's summary jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code (IBC).