NEW DELHI, Sept. 15 — The National Company Law Tribunal (NCLT) has rejected a plea by the liquidator of grounded Indian carrier Jet Airways seeking to recover around ₹500 crore from Boeing, ruling that the dispute involves complex contractual issues that cannot be decided within the tribunal’s limited insolvency jurisdiction.

Jet Airways had paid Boeing approximately US$92.13 million in advance and pre-delivery payments under aircraft purchase agreements signed in 2013. The agreements covered Boeing 737-8 and 787-9 aircraft, but the aircraft were never delivered.

Boeing suspended the agreements in 2019 following payment-related issues and later terminated the purchase agreements. During Jet Airways’ insolvency proceedings, Boeing claimed outstanding dues and adjusted the advance payments against its admitted claim. Boeing’s claim was initially admitted at about ₹721.19 crore and later increased to approximately ₹873.78 crore because of currency fluctuations.

The liquidator subsequently argued that the advance payments should form part of Jet Airways’ liquidation estate and sought their recovery for the benefit of creditors.

However, the Mumbai bench of the NCLT said determining whether Boeing was entitled to suspend the contracts, retain or forfeit the advance payments, and set them off against its claims would require examination of the underlying aircraft purchase agreements and detailed evidence.

The tribunal concluded that the competing claims involve disputed questions of fact and law requiring a full-fledged trial, which falls outside the scope of proceedings under Section 60(5) of the Insolvency and Bankruptcy Code.

The ruling does not establish that Boeing is ultimately entitled to the ₹500 crore. Instead, it leaves the underlying contractual dispute to be determined by a competent forum with jurisdiction to conduct a detailed trial.

The decision is another setback for efforts to maximize recoveries from Jet Airways’ assets following the airline’s liquidation. The Supreme Court ordered Jet Airways into liquidation in November 2024 after the Jalan-Kalrock Consortium failed to implement its approved revival plan, with the liquidation process subsequently commencing at the NCLT.