Jet Airways First Indian Company to Face Cross-Border Insolvency Protocol
New Delhi: In a major breakthrough for India’s insolvency mechanism which is still in its evolving stage, Jet Airways would be the first Indian company to undergo insolvency proceedings under the Cross Border Insolvency Protocol along with the Insolvency and Bankruptcy Code (IBC) of India.
The National Company Law Appellate Tribunal (NCLAT) had allowed the Dutch court administrator of Jet Airways to attend the meetings of the bankrupt airline’s Committee of Creditors (CoC). The resolution professional and the Dutch administrator, however, filed an application seeking an amendment in the September 26 order providing the approval to the Dutch administrator, which the appellate tribunal accepted on Thursday.
The NCLAT’s September 26 order had said: “Joint ‘Corporate Insolvency Resolution Process’ will continue in accordance with ‘Insolvency and Bankruptcy Code, 2016’.”
The appeal wanted the order to clarify that the resolution process would be carried on in accordance with ‘Insolvency and Bankruptcy Code, 2016’ and the ‘Cross Border Insolvency Protocol’, seeking the inclusion of ‘Cross Border Insolvency Protocol’ in the paragraph, along with ‘Insolvency and Bankruptcy Code, 2016’, which the bench accepted.
“We make it clear that the Dutch Trustee (Administrator) will work in cooperation with the ‘Resolution Professional of India’ and, if any, the suggestion is required to be given, he may give it to the ‘Resolution Professional’. The draft of the ‘Cross Border Insolvency Protocol’ clause is made final as above,” the order had said. (ians)