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Informist, Tuesday, May 12, 2026

MUMBAI – Ace Aviation XIV Ltd. has moved the Mumbai bench of the National Company Law Tribunal, alleging that the liquidator of debt-ridden Jet Airways (India) Ltd. has failed to apply for a letter of undertaking under the goods and services tax law and was thereby stalling the sale of aircraft to the petitioner. In April, Ace Aviation purchased two aircraft from Jet Airways after the latter went into liquidation. 

"The aircraft are over 20 years old and cannot be permitted to fly within India under the extant laws. The aircraft have been sitting idle for over six years. They were sold to the purchaser in an auction," senior advocate Rohan Shah, who appeared for Ace Aviation, told the tribunal. The seller is required to apply for requisite permission from authorities by filing a letter of undertaking before exporting goods under the Central Goods and Services Tax Rules, 2017, Shah said, further adding that the liquidator had not applied for the letter of undertaking. "The liquidator cannot stall the sale in this manner," Shah told the tribunal.

"There is no provision to the effect that the seller has to apply. The provision talks about 'registered person'. The purchaser can very well apply for the letter of undertaking," the lawyer appearing for the liquidator told the tribunal. However, Shah countered by saying that the term 'registered person' was defined as a supplier of goods or services under the Act, implying that the requisite permission was to be obtained by the seller. The tribunal will hear Ace Aviation's case next on Jun. 3.

In April, Jet Airways auctioned two Boeing 777-300ER aircraft for INR 5.68 billion through liquidator Satish Kumar Gupta to Ace Aviation, as per Jet Airways' exchange filing. One aircraft was acquired for INR 3.09 billion and the other INR 2.59 billion. Both aircraft were based in Delhi and represented significant assets in the airline's liquidation portfolio. 

Jet Airways has been grounded since 2019 after the Mumbai tribunal admitted State Bank of India's insolvency petition against the company. In the insolvency process, the consortium of United Arab Emirates-based entrepreneur Murari Lal Jalan and European investor Florian Fritsch emerged as the winning bidder to take over the airline in 2021. In November 2024, the Supreme Court had ordered the liquidation of Jet Airways after the consortium failed to implement the resolution plan. 

 

At 1349 IST, shares of State Bank of India traded slightly lower at INR 973.40 on the National Stock Exchange. For the March quarter, the bank reported a net profit of INR 196.84 billion on total income of INR 1.40 trillion.  End

Reported by Prateem Rohanekar

Edited by Avishek Dutta

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