Who will pay Jet Airways' dues to Mumbai Airport for parked aircraft? NCLAT asks NCLT to decide

The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed the National Company Law Tribunal (NCLT) to decide who will have to pay Mumbai International Airport Limited (MIAL) dues for the aircrafts parked by Jet Airways since its grounding in 2019. (MIAL v. Ace Aviation).A coram led by Chairperson Justice (retd) Ashok Bhushan and Technical Member Arun Baroka passed the direction in light of the Supreme Court's order dated November 7, directing the liquidation of Jet Airways..The NCLAT order was passed in an appeal filed by MIAL against an order of NCLT from October 7, holding that it cannot ask Malta based Ace Aviation to pay dues for three Boeing 777 aircrafts of Jet Airways that it wishes to purchase. Ace Aviation was awarded the bid to purchase the three aircraft belonging to Jet Airways in 2022. However, the process of sale of three aircraft for ₹400 crore was put on hold in November 2022 owing to a deadlock in the monitoring committee. It emerged that while the airline's lenders were agreeable to the sale of the aircraft, the consortium and the erstwhile workmen were opposed to it.According to the workmen, the aircraft could not be sold as they have a lien over the aircraft towards non-payment of their gratuity and provident fund dues. Ace Aviation approached NCLT against this deadlock. In October 2023, the NCLT told the committee: "Reinitiate the process and conclude the sale of the aircraft after taking into consideration the applicant as one of the eligible bidders.".In 2024, the Supreme Court directed the monitoring committee to complete the sale of the aircraft. However, MIAL objected to the sale contending that it has lien over the aircraft owing to pending dues. This led to the NCLT's October 7 order on the sale of aircraft. .Today, the NCLAT noted that since liquidation has already been ordered by the Supreme Court, the NCLT would have to take a relook at MIAL's dues. MIAL also made it clear that it was only 'interested in the colour of money', at this point.Ace Aviation, however, contended that MIAL's dues must be borne from the proceeds of the liquidation and it is not liable to pay the same. MIAL was represented by Senior Advocate Vikram Nankani and Advocate Ruby Singh Ahuja from Karanjawala & Co. Ace Aviation was represented by Senior Advocate Ritin Rai with Advocates Petrushka Dasgupta and Mrudul Yadav of Dentons Link Legal.