# In the matter of Jet Airways (India) Limited CP 1938,1968 & 2205 (MB)-MB-2019

> NCLT judgment dated 2019-06-20. Citation: TCN-2019-NCLT-02824. The case involves a company petition (CP No. 2205/2019) filed by State Bank of India (SBI)…

- **Court:** NCLT
- **Order date:** 20 Jun 2019
- **Citation:** TCN-2019-NCLT-02824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jet-airways-india-limited-cp-19381968-2205-mb-mb-2019-9323c5cb

## Summary

### Background

The case involves a company petition (CP No. 2205/2019) filed by State Bank of India (SBI) under Section 7 of the Insolvency and Bankruptcy Code (I&B Code), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jet Airways (India) Limited. Two other petitions (CP no 1968/2019 and 1938/2019) were filed under section 9 of the I&B Code by Gaggar Enterprises Private Limited and Shaman Wheels Private Limited, respectively, as operational creditors. All three petitions sought to initiate CIRP against Jet Airways and were dealt with in a common order. SBI's petition was filed on June 17, 2019, while another petition under Section 9 was already listed for argument on June 20, 2019, with notice served to the Corporate Debtor.

## Facts

State Bank of India (SBI) filed a company petition (CP No. 2205/2019) under Section 7 of the Insolvency and Bankruptcy Code (I&B Code), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jet Airways (India) Limited. SBI had granted a term loan of ₹1090 Cr. to Jet Airways via an agreement dated 2016-09-08. SBI, along with other lenders, executed a Common Loan Agreement (CLA) dated 2018-04-11. The financial exposure of SBI under the CLA was ₹1090 Cr. SBI and other lenders granted additional term loan facilities to Jet Airways via an Additional Term Loan Agreement dated 2018-04-11, with SBI granting an additional ₹200 Cr. Jet Airways also availed working capital facilities under a Working Capital Consortium Agreement dated 2014-10-20, with

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## Issues and analysis

### Issue 1: Whether the petition filed by State Bank of India under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP against a

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**Reasoning:** The court found that SBI had provided sufficient evidence of the financial debt owed by

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**Interpretation:** Section 7 of the I&B Code provides a mechanism for financial creditors to

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**Application:** The court applied Section 7 of the I&B Code to the facts of the case,

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## Parties

- **Judges:** Mr V. P.…; Mr Ravikumar…
- **Appellants:** State Bank of…
- **Respondents:** Jet Airways…
- **Other parties:** 7th Edition…; insolvency…; +3 more

## Timeline

- **2016-09-08 — Term Loan Ag…**: SBI granted a term loan of…
- **2018-04-11 — Common Loan Agreement…**: SBI, along with other lenders,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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