NCLAT directs Jet Airways to vacate office from premises of Mack Star Marketing

NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has directed Jet Airways, which is preparing to resume flight services in the coming months, to vacate its office from the premises of Mack Star Marketing in Mumbai.

While passing an order on May 6, a three-member bench of the NCLAT also said that no monthly fees shall be payable to Mack Star Marketing for use of the premises during the period when the the airline was undergoing Corporate Insolvency Resolution Process (CIRP).

Bogged down by financial woes, Jet Airways shuttered operations in April 2019 and the insolvency resolution process was initiated in June the same year. The latest ruling from the NCLAT came on a petition filed by Mack Star Marketing against an order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) in March 2021. The entity had claimed that the NCLT “erroneously” justified continuance of occupation of Jet Airways in the premises.

“The respondent (RP, Jet

Airways) is directed to handover the vacant possession of the premises within 15 days from today,” the NCLAT order said.

Further, the appellate tribunal said Mack Star Marketing is at liberty to take appropriate steps for its claim of license fees subsequent to June 22, 2021, when the CIRP of Jet Airways was completed.

“After possession of the premises is handed over to the appellant (Mack Star Marketing) by the respondent, the appellant shall communicate within 30 days to the respondent with regard to refund of security deposit, if any,” the NCLAT bench, headed by Chairperson Justice Ashok Bhushan, said in the order.

Jet Airways, in 2011, had entered into a license agreement with Mack Star Marketing to use its building as the office premise.

In 2018, Jet Airways vacated four office units and substantial unpaid dues were set-off by Mack Star Marketing from the security deposit. The airline had kept two units and a balance security deposit of Rs 1.35 crore was retained by the petitioner (Mack Star Marketing).