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Informist, Wednesday, Jul. 8, 2026

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Wednesday rejected the Maharashtra Industrial Development Corp.'s notices seeking to cancel allotment of two plots to debt-ridden Jet Airways India Ltd. The tribunal said the notices will have the effect of depleting the company's assets as on the date of commencement of liquidation, so the action is barred by the moratorium in place under the Insolvency and Bankruptcy Code, 2016. Therefore, the notices are liable to be set aside, it ruled.

 

The tribunal said the corporation's notices deal with the assets of Jet Airways. The company had the right to use the plots for a period of 95 years from the date of execution of lease agreement against the consideration that was paid upfront to the Maharashtra Industrial Development Corp. The proceeds from the land allotted to Jet Airways were to be used to settle the claims of creditors, it said.

 

The failure of Jet Airways to execute lease agreements with the Maharashtra corporation for the allotted plots, in the peculiar facts of the case such as the resolution plan for the debt-ridden company being set aside, cannot be attributed to its unwillingness, the tribunal said. Even otherwise, these notices take away the substantial rights of Jet Airways regarding its assets and the principles of natural justice must be adhered to before cancelling the allotment, it said. It directed the state body to execute the agreement to lease the lands to Jet Airways.

 

The Maharashtra Industrial Development Corp. had allotted the lands to Jet Airways in 2017 and 2018. The plots were allotted for undertaking information technology-enabled services, which included flight simulation, technology-based training, and animation and graphics, in addition to tree plantation and decoration. Possession of the plots was given to Jet Airways in 2020, subject to the execution of a lease agreement within 60 days. However, the lease agreements could not be executed because of litigation around the corporate insolvency resolution process of Jet Airways.

 

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 in 2021 to take over the airline. In November 2024, the Supreme Court ordered the liquidation of Jet Airways after the consortium failed to implement the resolution plan.  

 

Thereafter, the Maharashtra body issued letters to Jet Airways for cancellation of the allotted lands since the lease was not executed between the parties. The Maharashtra body also forfeited the premium money paid by Jet Airways for the allotted lands. Challenging the action of the Maharashtra body, the liquidator of Jet Airways moved the tribunal.

 

Wednesday, shares of State Bank of India ended at INR 1,016.90 on the National Stock Exchange, down 2% from Tuesday.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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