Mumbai, Jan 09: The National Company Law Tribunal (NCLT) has allowed an application filed by Jet Airways’ liquidator, Satish Kumar Gupta, seeking permission to deposit the money received from the sale of aircraft parked at Mumbai International Airport Limited (MIAL) since 2018.
Funds to be placed in liquidation account
The order specifically states that the money recovered from the sale of the airline’s aircraft shall be deposited into the company’s liquidation account and subsequently parked in a fixed deposit, pending adjudication of disputes relating to MIAL’s dues.
Bench composition
The order was passed by a bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar.
Clarification sought on earlier NCLAT order
The liquidator had sought clarification regarding an earlier direction of the National Company Law Appellate Tribunal (NCLAT) dated October 16, 2025, which required the sale proceeds of Jet Airways’ aircraft to be kept in a separate escrow account until MIAL’s claims were decided.
Gupta submitted that under Regulation 41(2) of the IBBI (Liquidation Process) Regulations, all monies received during liquidation must be deposited in the liquidation account, and that opening an escrow account would delay realisation and prejudice stakeholders.
Background of the application
The present order was passed on an application filed by the liquidator after the NCLAT, in October 2025, directed that the sale proceeds from the assets of the corporate debtor be kept separately in an escrow account, subject to the adjudication of MIAL’s claim.
Accordingly, the liquidator approached the NCLT seeking directions and clarifications regarding the deposit of all monies received by the corporate debtor, Jet Airways, from the sale of its assets into the liquidation account, in accordance with Regulation 41(2) of the IBBI Regulations.
Alternative arrangement approved
After hearing all parties, the tribunal noted that counsels were in consensus that the sale proceeds should not be appropriated until MIAL’s claims are finally adjudicated.
Considering the practical difficulties in opening an escrow account, the tribunal proposed an alternative arrangement whereby the proceeds would first be credited to the liquidation account and then immediately transferred to a fixed deposit account with the same bank.
Funds to remain untouched
The tribunal recorded that both the liquidator and MIAL agreed to this arrangement. It accordingly allowed the liquidator to receive the remaining aircraft sale proceeds in the liquidation account and transfer them to a fixed deposit, where the funds will remain untouched until final orders are passed in the pending proceedings.
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Meanwhile, the tribunal clarified that the fixed deposit amount shall be dealt with strictly in accordance with the final outcome of the pending applications and appeals concerning MIAL’s dues.
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