Business & Finance

Jet Airways Liquidator Seeks $92 Million Refund from Boeing, NCLAT Issues Notice

By Krishna Yadav

The liquidator of bankrupt Jet Airways has filed a petition with the National Company Law Appellate Tribunal (NCLAT) to recover $92.13 million (about ₹872 crore at current exchange rates) from Boeing. The claim concerns advance payments made under aircraft purchase agreements signed in 2013. The Delhi bench of the appellate tribunal heard the plea on Tuesday, issued a notice to Boeing, and gave the company two weeks to respond, followed by one week for the liquidator to file a rejoinder. The case is scheduled for hearing in the first week of December.

Jet Airways paid Boeing roughly $92 million as advance payments for aircraft that were never delivered. The total value of the orders was about ₹3,005 crore, of which Jet Airways paid about ₹872 crore upfront. The liquidator’s counsel told NCLAT that the advance payment was approximately $92 million.

The liquidator approached NCLAT after the Mumbai bench of the National Company Law Tribunal (NCLT) rejected a plea on 11 September seeking a refund of the advance payments. The NCLT held that the dispute involved contractual issues between Jet Airways and Boeing that required detailed examination and could not be decided through insolvency proceedings, and that the matter should be adjudicated by a competent court.

The dispute dates back to 2013, when Jet Airways entered into two aircraft purchase agreements with Boeing for 737‑8 aircraft and 787‑9 Dreamliners. The airline made advance and pre‑delivery payments, but the aircraft were never delivered. Jet Airways later faced financial difficulties and failed to make certain payments under the agreements. On 22 May 2019, Boeing issued a notice suspending its obligations under the contracts. Jet Airways entered insolvency proceedings in June 2019.

During the insolvency proceedings, Boeing filed a claim of $275.33 million for unpaid aircraft instalments, software and services. Boeing argued that the $91.62 million in advance payments already received from Jet Airways should be adjusted against the airline’s outstanding dues rather than refunded. After accounting for this adjustment, the resolution professional admitted Boeing’s claim at ₹721.19 crore, which increased to ₹873.79 crore during liquidation due to currency fluctuations. Boeing maintained that it did not owe Jet Airways any money because the advance payments had already been adjusted against the airline’s outstanding dues.

After Jet Airways failed to secure a revival, the Supreme Court ordered its liquidation on 7 November 2024. The NCLT began liquidation proceedings on 26 November 2024. The liquidator disputed Boeing’s position and filed an application before the NCLT seeking recovery of the advance payments. After the NCLT rejected the application, the liquidator moved NCLAT challenging the order and seeking relief.

Jet Airways, once one of India’s leading private airlines, suspended operations in April 2019 after mounting debt, financial losses and a cash crunch left it unable to fund daily operations. The airline was admitted into insolvency proceedings before the NCLT in June 2019 following a plea by an SBI‑led consortium of lenders. At the time, it owed banks around ₹8,700 crore, besides significant dues to vendors, employees and other creditors. In 2021, the NCLT approved a revival plan submitted by the Jalan‑Kalrock consortium, but the plan remained unimplemented amid disputes over payments and compliance with its terms. In November 2024, the Supreme Court overturned the revival process and ordered Jet Airways’ liquidation, ending efforts to revive the airline.