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Informist, Friday, Sept. 11, 2026

 

--NCLT rejects Jet Air liquidator plea seeking $92 mln refund from Boeing Co 

 

By Surya Tripathi

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Friday rejected Jet Airways (India) Ltd. liquidator's plea seeking refund of $92 million from Boeing Co. Jet Airways had made advance payments of $92 million to Boeing Co. towards procurement of aircraft. The tribunal said that the dispute between the parties revolved around purchase agreements between them and unless those agreements were tested and claims crystallised upon adjudication of disputes, the proceedings couldn't be said to be emerging out of the insolvency process.

 

The liquidator of Jet Airways had attempted to enforce the contract with Boeing Co. without producing that contract or its terms and get the refund of the advance paid by filing this plea, which the tribunal would not be competent to exercise power under the Insolvency and Bankruptcy Code, 2016 and National Company Law Tribunal Rules, 2016, said a bench of judicial member Sushil Mahadeorao Kochey and technical member Prabhat Kumar. 

 

The fact remains that Boeing Co. has not supplied any of the aircraft under the agreements to Jet Air, the tribunal said. Therefore, whether Boeing Co. was justified in suspending the agreement, forfeiting the advance payments and setting off or adjusting it or filing of its claim before the airline's resolution professional are questions that have to be adjudicated by the competent court of jurisdiction, it said. These questions require evaluation of agreements between the parties, leading of evidence by the parties and a full-fledged trial, it said. The airline's resolution professional having admitted the claim of Boeing Co. and later, changing its stand and claiming the amount from them would be required to be tested on the interpretation of the agreements between the parties, which is not produced by either of the parties, it said.

 

The claim of the liquidator or that of the Boeing Co. is not crystallised in any proceedings and therefore the jurisdiction of the tribunal under Section 60(5) of the 2016 Code would be circumscribed and restricted to the issues arising out of insolvency process, the bench said. A question of set-off is also required to be decided by the competent court to crystallise the amount as claimed by both the parties, it said.  

 

Jet Airways and Boeing Co. had entered into a purchase agreement for buying Boeing Model 737-8 Aircraft and Boeing 787-9 Aircraft in 2013. Thereafter, Jet Airways deposited a sum of $92 million with Boeing Co. as advance payment, which was acknowledged by the latter. However, Jet Airways was unable to pay certain amounts to Boeing Co. owing to some difficulty. Boeing Co. issued a notice of suspension to the airline purporting to suspend performance of all obligations with Jet Airways in 2019, the same year that the airline was admitted into insolvency. 

 

Jet Airways has been grounded since 2019 after the 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.  

 

In the insolvency proceedings, Boeing Co. had also filed its claims of INR 8.74 billion before the resolution professional of Jet Airways. Thereafter, when the airline was ordered to be liquidated, Boeing Co. terminated the purchase agreement with Jet Airways. Following this, the liquidator filed the application before the tribunal seeking refund of its advance money given to Boeing Co. The advance payments constitute a part of the liquidation estate of Jet Airways within the Insolvency and Bankruptcy Code and Boeing Co. is obligated to refund it, the liquidator said. 

 

On Friday, shares of State Bank of India ended 1.4% lower at INR 995.70 on the National Stock Exchange.  End

 

US$1 = INR 95.55

 

Edited by Avishek Dutta

 

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