# Jet Airways (India) Limited through Ashish Chhawchharia, Resolution Professional v. HDFC Limited [CP (IB) 2205/MB/ 2019]

> NCLT judgment dated 2020-06-11. Citation: TCN-2020-NCLT-01181. The case involves an application filed by the Resolution Professional (RP) of Jet Airways…

- **Court:** NCLT
- **Order date:** 11 Jun 2020
- **Citation:** TCN-2020-NCLT-01181
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jet-airways-india-limited-through-ashish-chhawchharia-resolution-professional-v-426c8d86

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Jet Airways (India) Limited, the Corporate Debtor, seeking approval from the National Company Law Tribunal (NCLT) for the sale of one of its non-core assets, specifically premises located on the 2nd, 3rd, and 4th floors of the Jet Airways Godrej BKC building. This sale is intended to clear overseas debt and free six aircraft from encumbrances, thereby maximizing the value of the Corporate Debtor during the Corporate Insolvency Resolution Process (CIRP). HDFC Limited, a secured creditor, had advanced INR 400 crore to the Corporate Debtor in 2017, secured by a security interest in the aforementioned premises. The RP sought permission for the sale of these premises, as approved by the Committee

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## Facts

In September 2017, HDFC Limited advanced INR 400 crore to Jet Airways (India) Limited, the Corporate Debtor. As security, a security interest was created in favor of HDFC over premises owned by Jet Airways, specifically the 2nd (part), 3rd, and 4th floors of the Jet Airways Godrej BKC building. These premises are considered a non-core asset and have never been used as part of Jet Airways' airline business. The Resolution Professional (RP) sought permission from the NCLT to sell these premises, based on a resolution passed by the Committee of Creditors (CoC) on April 24, 2020, with 74.45% approval. The sale proceeds are intended to clear residual dues payable to US Exim related to a finance lease on six aircraft and to HDFC for their security interest. US Exim holds a

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## Issues and analysis

### Issue 1: Whether the NCLT should approve the sale of the Corporate Debtor's non-core asset (premises) to …

**Ratio:** The NCLT has the authority to approve the sale of a Corporate Debtor's assets if it is

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**Reasoning:** The NCLT reasoned that the sale of the premises would unlock value for the Corporate

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**Interpretation:** The NCLT interpreted the IBC to allow for the sale of non-core assets to

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**Application:** In this case, the NCLT applied the ratio by considering the CoC's approval,

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## Parties

- **Judges:** SH. B.S.V.…
- **Appellants:** Ashish Chhawchhari…
- **Respondents:** Jet Airways…; Jet Air…
- **Other parties:** sale, non-core…

## Timeline

- **2017-09-01 — HDFC Loa…**: HDFC Limited advanced INR…
- **2020-04-24 — CoC Meet…**: Committee of Creditors (CoC) approved the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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