Mumbai: On Thursday, Bombay High Court refused to interfere in the Jet Airway case saying that it cannot direct the Reserve Bank of India to rescue a “sick company”.
A bench of Chief Justice Pradeep Nandrajog and Justice N M Jamdar neglected a written petition urging the government and the RBI be asked to direct the association of banks help the starved-airline from money. It was fielded on Wednesday.
Last night, jet Airways’ last flight landed from Amritsar and became the 7th carrier to shutter operations in the past five years.
The 25-year-old airline pursues Rs 400 crores fund as an emergency from its lenders to whom it already owes Rs 8, 500 crores. It was refused as the airline was not ready to offer more securities.
Banks led by SBI had invited and made an offer between 31 and 75 per cent stake in the airline and have already received four initial bids from Jet Airways’ foreign partner Etihad Airways who is the sovereign wealth fund NIIF. With this, TPG Capital and Indigo Partners, 2 private equity funds.
Past month, Naresh Goyal, Founder of Jet Airways airline along with his wife Anita were forced out of the airline by the banks. By May 10, the bank hopes to complete the sale process.
To the shuttering and the jet, the stock tanked over 32 per cent on the BSE against a 0.32 per cent, the market reacted in a bad way.
The company has put a halt over 20,000 jobs and money of millions of its passengers particular of their flight cancellation that started from January. While from its lenders and vendors, it owes thousands of crores.
The petitioner said to the court for the airline as “essential service” and thus the Court must pass orders to direct banks led by the State Bank Of India (SBI) to lend some funds to the airline so that to re-function the airline’s operations.
The plea also requested the Court to urge the Central bank to conduct a joint meeting of the SBI-led banks and Jet management during the sale process, so that to take required steps to keep the airline to continue.
However, the bench said it cannot direct RBI or the government to release funds for a “sick company”.
“We cannot direct the government to release funds for a sick company. The only things we can do is we can pass it around the room for collecting money for charity if you get a hat”, The Court said dismissing the petition and further advised to approach the National Company Law Tribunal.
