# State Bank of India & Ors. vs. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch & Anr. [Civil Appeal No. 5023-5024/2024]

> SC judgment dated 2024-11-07. Citation: TCN-2024-SC-00015. The case involves appeals against an order by the National Company Law Appellate Tribunal (NCLAT)…

- **Court:** SC
- **Order date:** 7 Nov 2024
- **Citation:** TCN-2024-SC-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/state-bank-of-india-ors-vs-the-consortium-of-mr-murari-lal-jalan-and-mr-florian-f57b8e94

## Summary

### Background

The case involves appeals against an order by the National Company Law Appellate Tribunal (NCLAT) which upheld an order by the National Company Law Tribunal (NCLT) approving a resolution plan for Jet Airways (India) Limited. The NCLT had held that the Resolution Applicant (Respondent No. 1) had fulfilled all conditions precedent as stipulated in the Resolution Plan and directed that a Performance Bank Guarantee (PBG) of Rs. 150 Crore could be adjusted towards the first tranche payment of Rs. 350 Crore. The appellants challenged this order, arguing that the adjustment of the PBG was impermissible, that the airport dues were incorrectly limited, and that the workmen's dues were improperly reduced. The Supreme Court examines the validity of the NCLAT's order and the

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## Issues and analysis

### Issue 1: Whether the Performance Bank Guarantee (PBG) could have been adjusted against the first tranche …

**Ratio:** The Performance Bank Guarantee (PBG) cannot be set-off against or used as part of the

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**Reasoning:** The Supreme Court reasoned that the terms of the RFRP, particularly in relation to the

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**Interpretation:** The interpretation of the Resolution Plan and the RFRP is that the PBG was

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**Application:** The Court applied the ratio to the facts of the case, noting that the NCLAT's

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## Parties

- **Judges:** Dr Dhananjaya Y…; J.B. PARD…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Jet Airways…; The Consortium of…
- **Other parties:** 7th Edition…; Performance Bank…; +5 more

## Timeline

- **2019-06-20 — NCLT admits CIRP…**: The NCLT admits the application for initiation of Corporate Insolvency Resolution Process…
- **2020-06-02 — RP issues…**: The Resolution Professional (RP) issues the 4th Round of the Request for Resolution Plan…

## 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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