SBI moves NCLT against grounded Jet Airways

State Bank of India (SBI) on Tuesday moved the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against Jet Airways, only days after two operational creditors — Shaman Wheels and Gaggar Enterprises — filed similar petitions before the tribunal under Section 9 of the Insolvency and bankruptcy Code, 2016. SBI, represented by Cyril Amarchand Mangaldas, has filed a petition under Section 7 of the IBC, that allows financial creditor to file an application against the corporate debtor.

The NCLT’s Mumbai bench has adjourned the matter to June 19, while two applications filed by operational creditors were set to be heard on June 20. SBI’s move to refer Jet Airways under the IBC comes as no surprise, after SBI in a statement released on Monday said, “After due deliberations, the lenders have decided to seek resolution for Jet Airways under the bankruptcy code since only a conditional bid was received.