A court in India has dismissed Jet Airways' liquidator Satish Kumar Gupta's bid to recover USD 92,129,387 in advances and pre-delivery payments made to Boeing for aircraft that were never delivered. The Mumbai bench of the National Company Law Tribunal (NCLT) ruled that the dispute required interpretation of the underlying purchase agreements and involved contested contractual issues outside its jurisdiction under Section 60(5) of India's Insolvency and Bankruptcy Code.
Gupta argued that the funds were part of Jet Airways' liquidation estate, but Boeing countered that it had already applied the payments against larger creditor claims and was entitled to deduct them from amounts owed by the airline. The court did not make a decision on whether Boeing was entitled to keep the payments or deduct them.
Jet Airways' audited accounts for March 31, 2020, noted INR 5 billion (USD 52.5 million) in advances to Boeing and indicated that Boeing suspended the relevant agreement in May 2019 following Jet Airways' payment defaults. Boeing later removed 125 B737-8s and ten B787-9s associated with Jet Airways from its backlog, as reported by ch-aviation.
The case reflects ongoing financial disputes following Jet Airways' insolvency, affecting aircraft orders and fleet management. The outcome underscores the complexity of airline insolvency proceedings and the legal challenges in asset recovery for creditors and stakeholders.
