The liquidator of bankrupt airline Jet Airways has moved the National Company Law Appellate Tribunal (NCLAT), seeking recovery of $92.13 million (about ₹872 crore at current exchange rates) from US aircraft manufacturer Boeing in advance payments made under aircraft purchase agreements signed in 2013.
The plea, filed by Jet Airways’ liquidator Satish Kumar Gupta, was heard by the Delhi bench of the appellate tribunal on Tuesday. The tribunal issued notice to Boeing and gave it two weeks to file its response, followed by one week for the liquidator to file a rejoinder. The matter has been listed for hearing in the first week of December.
According to the liquidator’s counsel, who appeared before NCLAT, Jet Airways had paid Boeing about $92 million as advance payments for aircraft that were never delivered. The total value of the aircraft orders was about ₹3,005 crore, of which Jet Airways paid about ₹872 crore upfront. “The advance payment made by Jet Airways to Boeing was approximately $92 million, equivalent to around ₹872 crore,” the liquidator’s counsel told NCLAT.
The liquidator approached NCLAT after the Mumbai bench of the National Company Law Tribunal (NCLT), on 11 September, rejected its plea 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. It said the matter would have to be adjudicated by a competent court.
Emails to Boeing and Jet Airways’ liquidator seeking comment remained unanswered at the time of publishing.
Origin of the dispute
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 for the aircraft, but they were never delivered.
Jet Airways subsequently 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 before Jet Airways’ resolution professional for unpaid aircraft instalments, as well as certain 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. This 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.
However, Jet Airways’ liquidator disputed Boeing’s position and filed an application before the NCLT, seeking recovery of the advance payments. The liquidator argued that Boeing should return the money as the contracted aircraft were never delivered. 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, raising hopes of its return. However, 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.
About the Author
Krishna Yadav
Krishna Yadav is a Senior Correspondent at Mint, based in New Delhi, and part of the corporate bureau. He joined the newsroom as a trainee in 2023 and quickly grew into his current role. He writes on legal and regulatory developments in corporate India, with a focus on insolvency, taxation, company law, and policy. His reporting includes tracking and breaking key legal stories from the Supreme Court, Delhi High Court, NCLT, and NCLAT.
With a background in law, Krishna is known for simplifying complex legal developments into clear, accessible stories for readers. His work focuses on trends in corporate law and policy that affect businesses. This ranges from explaining tax disputes—like whether coconut hair oil is edible—to writing on why celebrities are seeking personal rights protection. He closely tracks India’s insolvency system, covering issues such as creditor losses, gaps in the process, and challenges in how the framework works in practice.
Krishna also tracks developments within law firms—covering hiring trends, how firms help companies navigate global challenges, and how the legal industry is adapting to artificial intelligence. Beyond legal reporting, he has written long-form pieces, including on-ground coverage of the 2024 general elections, capturing the scale and logistics of polling across India.
Outside work, he enjoys travelling, exploring new places, and reading about geopolitics and history.
