NCLT Dismisses Jet Airways' Plea for INR 500 Crore from Boeing
The National Company Law Tribunal's Mumbai bench has dismissed Jet Airways' liquidator's plea to seek INR 500 crore from Boeing, citing that the dispute over pre-delivery and advance payments is fundamentally contractual. The tribunal ruled on September 11 that the disputed questions of fact and law require examination through a full-fledged trial.
The dispute dates back to 2013 when Jet Airways made advance payments worth USD 92.13 million to Boeing for aircraft that were never delivered. The liquidator sought to recover these funds, arguing they should form part of the liquidation estate available for distribution to creditors under Section 36 of the Insolvency and Bankruptcy Code.
Boeing's claim against Jet Airways was admitted at INR 721.19 crore, which later rose to INR 873.78 crore on account of currency fluctuations during the liquidation process. Boeing terminated the purchase agreements in December 2020, but the tribunal did not rule on whether the company can retain or set off the advance payments.